PRC-1 · Chapter 1 · Question 42 of 100
'Global Traders' earns its primary income by selling electronic appliances. How should the income generated strictly from the sale of these appliances be classified in the financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Revenue
Explanation
According to accounting principles, income arising in the course of the ordinary, primary trading activities of an entity is formally classified as revenue.
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