Asked by Rosemary Rubino on May 21, 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 Income on the multiple-step income statement.
Other Income
Revenue generated from non-primary business activities, such as interest, dividends, or the sale of assets.
Multiple-Step Income Statement
A detailed financial statement that separates operating revenues and expenses from non-operating ones, providing a thorough insight into company performance.
- Acquire knowledge about the different aspects of the income statement and their influence on net income.
Verified Answer
BS
Breeanna SundbergMay 27, 2024
Final Answer :
True
Explanation :
This is true. Other income is reported separately on the income statement because it is not related to the normal operations of the business. Examples of other income include gains from the sale of fixed assets, gains from investments, and settlements from lawsuits.
Learning Objectives
- Acquire knowledge about the different aspects of the income statement and their influence on net income.
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