Asked by bella moore on Jul 20, 2024
Verified
Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Revenue on the multiple-step income statement.
Multiple-Step Income Statement
A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.
Other Revenue
Revenue from sources other than the primary operating activity of a business.
- Identify the accounting methods for handling non-operational revenue and expenditures in the income statement.
Verified Answer
CC
Casey CulliganJul 27, 2024
Final Answer :
True
Explanation :
Other revenue includes income that is not directly related to the operations of the business, such as gains from the sale of investments or fixed assets. This is shown separately on the multiple-step income statement to help provide a clearer picture of the company's financial performance.
Learning Objectives
- Identify the accounting methods for handling non-operational revenue and expenditures in the income statement.
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