Question

which of the following should not be called sales.
(a) sale of item previously included in purchase
(b) goods sold on credit
(c) goods sold for cash
(d) office fixtures sold ​

Answer 1

which of the following should not be called sales.

(a) sale of item previously included in purchase

(b) goods sold on credit

(c) goods sold for cash

(d) office fixtures sold ✔✔✔✔

Answer 2

Office fixtures sold and also goods sold on credit should not be called sales

Options b and d

Explanation:

• Total sales does not include any form of income which is based on non operating methods like investments,  or rental payments. It also does not include any form of taxes.
• The total sales also does not take into account any form of credit charges. Re-issue of shares for investments are also not included into sale of goods.
• The furniture and and other movable office fixtures  are items which are used in office and are referred to as fixed assets. It is shown on the balance sheet of the organization as long term asset which are in form of tables, chairs, sofas, bookcases and more

To know more about fixed assets

Investment are fixed assets or current assets

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