Question

state true or false with reason The gain from sale of capital assets need not be added to revenue to ascertain the net operating

profit of a business​

Answer 1

Answer:

true

Explanation:

the gain from sale of goods and service is added to revenue to ascertain the net operating.. in normal course of business the gain from sale of capital assets need not to be added to revenue to ascertain the net operating

Answer 2

Answer:

True,  The gain from sale of capital assets need not be added to revenue to ascertain the net operating profit of a business​.

Explanation:

• Gross profit is computed to know the profit from sale and purchase of goods & services, operating profit.

• Only operating incomes ,expenses and net profit is gross profit less or reduced operating expenses.

• The gain from sale of capital assets are added to non operating profit not in gross profit , operating or net profit.

For example

• if we sale Land or machinery and after selling that fixed or capital assets any profit or gains arises from that it will be directly recorded in Non operating income not in Gross profit, operating profit or In net profit.
• Thus, any gains from any capital assets will not be recorded in net operating profit of business.

#SPJ2