Question

sales revenue	300,000
COGS	180,000
Selling and Admin	30,000
Interest rev	6,000
Dividends declared and paid	9,000
Loss from discontinued	15,000
Dividend rev	8,000
Interest ex	8,000

What is the net amount of non-operating revenue and expenses?

-81,000

-6,000

-(9,000)

-(3,000)

Answer 1

The non operating expenses are those expenses which are not directly related to the business operations. And no income is generated relevant for the business sales.

In same way Non-operating income is any profit or loss generated by activities outside of the core operating activities of a business.

Here the dividend paid is not the part of income statement either as operating expenses or operating income.

Further loss from discounted operations are beyond operating and non operating profit it is shown seperately in the income statement not a part of non operating activities.

Accordingly, the non operating activities are Dividend received, interest received , interest expenses.

Thus the net non operating income = Operating income - operating expenses.

Net non Operating income = (Interest revenue+ dividend revenue) - Interest expenses.

Net non operating income = 6000 + 8000 - 8000

Net non Operating income = 6000.

Thus the correct option is ------B i.e 6000.