PRC-1 · Chapter 1 · Question 88 of 100
A business occasionally sublets an unused portion of its warehouse to a neighboring company. How should the rent received from this tenant be classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Revenue Receipt
Explanation
Rental income generated from the incidental use of business properties is treated as a routine operating inflow, which classifies it as a revenue receipt (other income).
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