Question

What is the definition of Operating Income?

How about non-operating income?

Could someone explain these two concept with easy English?

Answer 1

Answer:

Operating Income:

Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation and cost of goods sold (COGS).

Formula for Operating Income is:

Operating Income = Gross Income - Operating Expenses

Non-operating Income:

Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include items such as dividend income, profits or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs.

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