Lesson: Non-Operating Activities

In this lesson, Nick Palazzolo, CPA, delves into the realm of non-operating activities, emphasizing their distinction from a company's core operational revenue. Highlighting the fact that items such as interest earned, dividend revenue, and rent revenue may support a business, he makes clear that these are not part of the central operating activities. By dissecting components like gains from sales of property, plant, and equipment (PP&E), interest expenses, and losses due to various causes, Nick provides a practical understanding of what classifies as non-operating. He points out that while certain items, like interest and dividends or gains and losses on PP&E, are more common, it's crucial to recognize and categorize these activities correctly for accurate financial reporting.