Question

Direct income and indirect income list

Answer 1

Answer:

Direct income is one which is earned directly by way of business activities. Indirect income is one which is earned by way of non-business activities. For example, sale of old newspapers, sale of carton boxes, etc.

The remuneration of goods sold or services provided is called revenue. It includes both cash received for goods sold and services rendered and accounts receivable for goods sold and services rendered on credit. ... Direct Revenues. Indirect Revenues.

Cash Discount Received is an indirect income for the business firm. That is why it is shown in income side of profit and loss account.