Understanding Income Statement: Non-Operating Revenue

Non-operating revenue is the money a business earns from activities not related to its main, regular work.

Using the apple tree analogy:

• Your main business is growing and selling apples. The money from selling apples = operating revenue.

• Now imagine you also:

  • Rent out your orchard for picnics or events.

  • Sell old branches or wood from the tree.

  • Earn interest from money in the bank that you made from your apple business.

The money you receive from these extra, side activities—like renting out your orchard, selling branches, or getting bank interest—is your non-operating revenue. It’s real income, but it isn’t from your main fruit (apple) sales.

Non-operating revenue is like the extra money your apple tree brings in from things other than selling apples. It’s cash from activities that are outside your core fruit business.