Which item is not typically categorized as Non-Operating Income?

• A. Inventory Write-Down
• B. Interest Income
• C. Gains on Sale of Investments
• D. Foreign Exchange Gains

Answer: (A)

Non-operating income comes from sources outside the company’s regular day-to-day activities. Interest income is earned from cash or investments rather than from selling goods or services, so it sits with non-operating income. Gains on sale of investments likewise come from investment activities, not core operations, and foreign exchange gains arise from currency movements rather than the primary business activity, so they are typically shown as non-operating. An inventory write-down, however, relates to the impairment of goods tied to the normal production and sales process and affects operating costs (reducing inventory or increasing cost of goods sold). It is treated as part of operating results, not as non-operating income.