Which of the following is an example of a non-operating activity?

Prepare for the WGU ACCT2313 Financial Accounting Test. Study with our interactive quizzes featuring multiple choice questions with detailed explanations and hints. Excel in your exam and boost your confidence!

Earnings from investments represent a non-operating activity because they are generated from sources outside of the core business operations. Non-operating activities are those that do not relate directly to the primary business activities, such as selling goods or providing services.

In contrast, selling a product and offering a service are fundamental operational activities that reflect the primary revenue-generating functions of a business. Paying suppliers is also an operational activity, as it pertains to the day-to-day essential functions of managing inventory and maintaining business operations. In this context, earnings from investments are categorized as non-operating because they come from financial activities, such as interest or dividends from investments, rather than from the primary activities of running the business itself.

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