DECA Financial Consulting Practice Exam 2026 - Free DECA Financial Consulting Practice Questions and Study Guide

Question: 1 / 400

For a small business budget tracked in a spreadsheet, which of the following should be categorized as investment income?

Sales revenue

Dividends

Categorizing investment income correctly is essential in a small business budget, particularly when using a spreadsheet for tracking financials. Dividends are profits distributed to shareholders from a company's income or earnings, which directly come from investments in other companies. As a form of passive income, dividends signify the return on investment, separating them from active revenue streams associated with the primary operations of the business.

On the other hand, sales revenue represents money earned from selling goods or services, loan payments are the principal and interest paid on borrowed funds, and operating costs are the day-to-day expenses incurred in running the business. None of these categories represent income derived from investments in the same way that dividends do, making dividends the correct choice for investment income in this context.

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Loan payments

Operating costs

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