Question

Income derived from, normal operation of the business is called ________.

• A. normal income
• B. manufacturing income
• C. operating income
• D. financial income

Answer 1

The correct option is C operating income

There are two kinds of income i.e. operating income and non operating income. Any income which is arrived from the business through its a normal business activity is termed as operating income. Dividend received against the investments is treated as non operational income, if the investment activity is not the main business activity.