Operating Income Refers To

question 108

Multiple Choice

Operating income refers to:

• A)operating revenue minus operating expenses.
• B)revenue generated by day-to-day business activities.
• C)gains minus losses.
• D)the net income of the company during the relevant time period.

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Definitions:

Unrealized Loss

A loss that results from holding an asset that has decreased in value, but the asset has not yet been sold.

Fair Value Adjustment

A financial accounting process of adjusting the fair market value of assets and liabilities.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and thus, the loss has not been realized.

Gain on Sale of Investment

The profit realized from selling an investment for more than its purchase cost.