Answer to Question #200641 in Accounting for N SANTOSH

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 arises 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 cash flow statement does not include revenue from operations. It's used to figure out the income statement's net income. The income statement also includes other sources of revenue. The net income is calculated by adding them to the operating income.

The net income figure is included in the cash flow statement's operating activities section.