Answer to Question #199546 in Accounting for bhushan

Question

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer's loved ones. The inflows arise from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income

Answer 1

The revenue generated by a company's usual running activities, such as net sales or services supplied, is referred to as revenue from operations. Before any expenses are removed, it is the total amount of income created by a corporation from the sale of its goods or services.