Explain the Difference Between Operating Revenues/expenses and Nonoperating Revenues/expenses

question 38

Essay

Explain the difference between operating revenues/expenses and nonoperating revenues/expenses. Why does the GASB require that operating revenues/expenses be reported separately on proprietary statements of revenues, expenses, and changes in fund net position?

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Definitions:

Principle of Reinforcement

The principle of reinforcement is a concept in behaviorism that describes how the consequences of a behavior increase or decrease the likelihood of that behavior being repeated.

Social Exchange Theory

A concept in social psychology which suggests that human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Comparison Level

One’s personal standard of what constitutes an acceptable balance of rewards and costs in a relationship.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.