Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Which of the following items will be presented in the 'revenue from operations' head while preparing income statement  of the financial company?
A) Interest on loans given
B) Dividend income
C) Sale of miscellaneous items
D) Refund of income tax
E) Revenue from services rendered

Options:

CD

ABE

ACE

CDE

Correct Answer:

ABE

Explanation:

The items included in the Revenue from operations are:
(i) Sale of products
(ii) Sale of services
(iii) Other operating revenues
But for a finance company, revenue from operations shall include revenue from interest, dividend and income from other financial services.