Which statement about non-operating revenue is true?

• A. Non-operating revenue includes investment income and gift shop revenue
• B. Non-operating revenue includes only government grants
• C. Non-operating revenue includes neither investment income nor gift shop revenue
• D. Non-operating revenue is the same as operating revenue

Answer: (A)

Non-operating revenue comprises funds that aren’t earned from delivering patient care. Investment income comes from the hospital’s investments, not from charging for services. Gift shop revenue, while it occurs within the hospital, results from an auxiliary activity rather than from core patient-care services, and is typically treated as non-operating on financial reports. Since both investment income and gifts/donations (including auxiliary revenue like a gift shop) are not payments for services rendered, this statement correctly groups them as non-operating revenue. Government grants can also appear in non-operating revenue, but the key idea is that non-operating revenue includes items outside the core patient-care revenue.