Operating income is that income which is earned through primary business activity while non operating income is that part of income which is not generated through primary operations of business like interest income, dividend income etc.
Nonoperating Income
Ordinary income refers to any income that is not capital gain. Operating income is how much revenue a company will profit.
Net income differs from net operating cash flows for several reasons. One reason is noncash expenses, such as depreciation and the amortization of intangible assets. These expenses, which require no cash outlays, reduce net income but do not affect net cash flows. Another reason is the many timing differences existing between the recognition of revenue and expense and the occurrence of the underlying cash flows. Finally, nonoperating gains and losses enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
operating income refers to "net" profits. The amount of money a company has after all overhead and taxes. Revenue is the sales for a company from goods sold or "gross income.
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
Nonoperating Income
Ordinary income refers to any income that is not capital gain. Operating income is how much revenue a company will profit.
Net income differs from net operating cash flows for several reasons. One reason is noncash expenses, such as depreciation and the amortization of intangible assets. These expenses, which require no cash outlays, reduce net income but do not affect net cash flows. Another reason is the many timing differences existing between the recognition of revenue and expense and the occurrence of the underlying cash flows. Finally, nonoperating gains and losses enter into the determination of net income, but the related cash flows are classified as investing or financing activities, not operating activities.
operating income refers to "net" profits. The amount of money a company has after all overhead and taxes. Revenue is the sales for a company from goods sold or "gross income.
Operating income is the profit a company makes from its core business operations after deducting operating expenses, while operating revenue is the total amount of money generated from those core business activities before deducting expenses. In simple terms, operating income is the profit left over after subtracting expenses from revenue.
the difference between income and consumption
Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.
Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.
Net operating income (must be a positive number, otherwise would be net operating loss) is the amount after expenses have been deducted out of sales, BUT before INTEREST and INCOME TAXES have been deducted (also called EBIT: Earning before Interest and Taxes). Therefore, the difference is that Net operating income includes interest and income tax expenses, where as Net Income does not include it. Sales (-)CGS Gross profit (-)Operating expenses/depreciation Net operating Income (EBIT) (-)Interest and income taxes Net Income
Net income refers to all income minus expenses and taxes. Ordinary income refers to all income other than capital gain. Therefore, net ordinary income is income, with the exception of capital gain, after expenses and taxes are deducted.
The difference in operating income between the two methods is the difference in ending inventory values, which is the fixed overhead costs that have been capitalized as an asset ( inventory ) because overhead costs that have been capitalized as an asset.
there is no difference.