A company which is in the business of manufacturing televisions, decides to rent its warehouse for long term. This is an example of :Select one:a.Operating Incomeb.Other Operating Incomec.Other Incomed.None of the above
Question
A company which is in the business of manufacturing televisions, decides to rent its warehouse for long term. This is an example of :Select one:a.Operating Incomeb.Other Operating Incomec.Other Incomed.None of the above
Solution
This is an example of c. Other Income.
Here's why:
Operating income is generated from the core business operations. In this case, it would be the income generated from manufacturing televisions.
Other operating income refers to income generated from secondary activities that are still related to the core business operations. For example, if the company sold some of its manufacturing equipment, the income from that sale would be considered other operating income.
Other income refers to income that is not directly related to the core business operations. In this case, the company is generating income by renting out its warehouse, which is not directly
Similar Questions
Warehouse rent is a part of .a.factory cost.b.prime cost.c.distribution cost.d.production cost.
Economic rent is:A.all income earned by any factor owner.B.income earned above a factor's opportunity cost, by any factor owner.C.income earned above a parcel of land's opportunity cost, by any land owner.D.money income earned by any factor owner.E.money income earned by land owners.SUBMITarrow_backPREVIOUS
Multiple Choice QuestionWhen you rent an apartment, the business transaction is carried out by means ofMultiple choice question.a contract.an agency.a voluntary agreement.the uniform commercial code.
Information stored in the data warehouse Blank______.Multiple choice question.gives customers' income dataincludes competitors' datais kept hidden from all personnel except top managementmay be accessed by analysts from various levels of the corporation
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of Blank______.Multiple choice question.liabilitiesoperating expensesassetsrevenue accounts
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.