The items in the "statement of profit and loss", for the Revenue from operations DON'T include: If it is a non-finance company.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Interest income
For a non-finance company, revenue from operations covers only its main activity: sale of products, sale of services and other operating revenues. Interest earned by such a company is incidental to its business, so it is shown under Other income. Only for a finance company, whose business is lending, does interest form part of revenue from operations.
Option (1) Sale of products — Included in revenue from operations. The main source of revenue of a trading or manufacturing company.
Option (3) Sale of services — Included in revenue from operations. Revenue of a company that renders services as its business.
Option (4) Other operating revenues — Included in revenue from operations. Revenue arising from the operations, such as sale of scrap.
NCERT (2026-27 edition):
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