Identify the item of Revenue from Operations of a non-financial enterprise out of the followings: A- Interest earned on loans, B- Dividend earned, C- Sale of Goods, D- None of these
Answers
Answer:
Option C - Scale of goods is the correct answer.
Explanation:
- While sales are one of the most important sources of revenue for a firm, revenue is the result of sales.
- Revenue refers to the overall revenue of the business, which includes both operating and non-operating revenue.
- Revenue from operations:
- (i) Sales; (ii) Revenue from Services Rendered; (iii) Scrap Sale;
- From other income:
- (iv) Gain (Profit) on Sale of Investments; (v) Interest Earned on Loans.
Hence, the sale of goods is the revenue from the operations of a non-financial enterprise.
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Answer:
Non-operating income is income generated by activities outside the company's primary operations. This type of income tends to be rare and often unusual.
Explanation:
The correct answer is option C-Measurement of goods.
Operating income or operating income can be defined as the income generated by an entity from its day-to-day core business operations. If an entity is able to generate a steady stream of income from its operations, it is said to have operated successfully. It is also called operating income.
Example – ABC Automobile Co. manufactures and sells automobiles as its day-to-day core business, so its operating income is said to be generated solely from automobile sales.
Non-operating revenues generated by a business are not related to its main operating activities. They tend to be relatively rare and may be associated with unusual events. For example, a business may report as non-operating income all revenue from litigation, interest income and gains from the sale of assets.
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