Question

1. Rent received from sub-letting of premises of the concern is
(a) Operational Income
(b) Non-operational Expenditure
(C) Non-operational Income
(d) None of the above​

Answer 1

Answer:

(C) Non-operational Income

Explanation:

Non-operational Income-

1) Non-operating income refers to the part of a company’s income that is not attributable to its core business operations.

2)It is a category in a multi-step income statement.

3) Investment income, gains or losses from foreign exchange, as well as sales of assets, writedown of assets, interest income are all examples of non-operating income items.

4)Some of the non-operating income items are recurring, for example, dividend income, and interest income.

5)Others are non-recurring, such as asset writedowns and gains or losses from the sale of an asset.

6)Some non-operating items are recurring, but many are non-recurring.

7)Non-operating and operating incomes are reported on separate lines in a multi-step income statement.

FINAL ANSWER - Non-operational Income

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Answer 2

Answer:

Rent received from sub-letting of premises of the concern is (C) Non-operational Income.

Explanation:

Non-operating income exists as the portion of an organization's income that is derived from actions not connected to its core business operations. It can contain dividend income, profits or losses from investments, as well as profits or losses incurred by foreign exchange and asset write-downs.

• 1) Non-operating income directs to the part of a company’s income that exists not attributable to its core business operations.
• 2)It exists as a category in a multi-step income statement.
• 3) Investment income, profits or losses from foreign exchange, as well as sales of assets, write-down of assets, and interest income exist all examples of non-operating income items.
• 4)Some of the non-operating income items exist as recurring, for example, dividend income, and interest income.
• 5)Others exist as non-recurring, such as asset write-downs and gains or losses from the sale of an asset.

Hence, the Rent received from sub-letting of premises of the concern is (C) Non-operational Income.

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