The Primary Distinction Between Operating Activities and Nonoperating Activities in a Multiple-Step

question 142

Multiple Choice

The primary distinction between operating activities and nonoperating activities in a multiple-step income statement is whether the activity is:

• A)A large or small dollar amount.
• B)Part of primary business operations.
• C)Related to current versus long-term assets.

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Definitions:

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to consumer income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.

Inferior Goods

A good that has a negative income elasticity, so that as consumer income rises, the demand for the good falls.

Normal Goods

Goods for which demand increases as the income of individuals increases.