Non-operating income refers to which type of profits?

Non-operating income is specifically related to profits that are generated from investments outside of a company's primary business activities. This includes profits earned on investments in stocks or bonds, gains from the sale of assets, and any income derived from subsidiary operations or partnerships.

In the context of business operations, core income sources usually revolve around the main activities that the business engages in daily, such as selling goods or services, which would be represented by options that pertain to operational revenues. Non-operating income, in contrast, does not come from these core activities but from auxiliary sources that can supplement a company’s financial performance.

The option that identifies profits from investments in other companies accurately captures the essence of non-operating income, highlighting its distinction from other types of profits that are directly related to the primary operations of the business.