Which of these is not an operating income?
Correct answer: C. Interest on FDs
- A. Income from sale of trading goods
- B. Bad debts recovered
- C. Interest on FDs
- D. None
Explanation
Interest on fixed deposits is normally non-operating income because it arises from an investment rather than the main trading activity. Sales of trading goods and recovery of bad debts are generally treated as operating-related income in this classification.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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