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Ordinary income refers to any income that is not capital gain. Operating income is how much revenue a company will profit.

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Q: What is the difference between ordinary income and operating income?
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What is the difference between operating income and non-operating income?

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.


What is the difference between operating income and net revenue?

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.


What is ordinary income vs net income?

The difference between ordinary income and net income is as important as the differences between tax deductions and operating expenses. Ordinary income refers to income received from salaries, interest income, etc., while net income is a specific accounting term related to financial reporting of a business operations for a specific time period. Think of ordinary income as that which is earned and reported by individual tax payers on their taxes, while net income is reported by a business. Generally speaking net income can be figured as follows: Revenues (Total dollar figure from operations) (-) Cost of goods sold = Gross Profit -- Selling, General and Administrative Costs (SG&A) (Operating expenses) = Earnings Before Interest,Taxes, and Amortization expenses (EBITA) (-) Depreciation and Amortization= Earnings Before Interest and Taxes(-) Interest Expenses (cost of borrowing money)= Earnings Before Tax (EBT)(-) Tax Expense = Net income


What is the distinction between operating and non operation 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.


Difference between capital income and revenue income?

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.

Related questions

What is the difference between net ordinary income and net operating 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.


What is the difference between operating income and non-operating income?

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.


Difference between extra ordinary items and exceptional items?

is compensation received an exceptional income


What is the difference between operating income and net revenue?

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.


What is ordinary income vs net income?

The difference between ordinary income and net income is as important as the differences between tax deductions and operating expenses. Ordinary income refers to income received from salaries, interest income, etc., while net income is a specific accounting term related to financial reporting of a business operations for a specific time period. Think of ordinary income as that which is earned and reported by individual tax payers on their taxes, while net income is reported by a business. Generally speaking net income can be figured as follows: Revenues (Total dollar figure from operations) (-) Cost of goods sold = Gross Profit -- Selling, General and Administrative Costs (SG&A) (Operating expenses) = Earnings Before Interest,Taxes, and Amortization expenses (EBITA) (-) Depreciation and Amortization= Earnings Before Interest and Taxes(-) Interest Expenses (cost of borrowing money)= Earnings Before Tax (EBT)(-) Tax Expense = Net income


What is the distinction between operating and non operation 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.


Difference between capital income and revenue income?

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.


What is the difference between consumption and income?

the difference between income and consumption


What is difference between Net Income and Net Operating Income?

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


What is the difference between Net income and Net income available to ordinary shareholders?

i don't now u ask some one with brains for all i care p.s. i like pie


Why do income statements for internal purposes differ to published income statements?

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.


What is Gross operating income?

It is the difference between revenue from the business and the cost of making a product or providing a service. This is the number before you deduct all expenses.