Gains from the sale or exchange of assets are not considered as revenu...
False.
Explanation:
Gains from the sale or exchange of assets are considered as revenue of business because they represent an increase in the owner's equity or net worth. However, they are not considered as operating revenue because they are not generated from the normal course of business activities.
Assets can be sold or exchanged for various reasons, such as to generate cash, to reduce debt, to acquire new assets, or to realize a profit. The gain from the sale or exchange of an asset is calculated as the difference between the amount received and the carrying value of the asset.
The accounting treatment of gains from the sale or exchange of assets depends on the nature of the asset and the method of disposal. For example, gains from the sale of property, plant, and equipment are usually recognized in the income statement as other income or gains, while gains from the sale of investments are recognized as investment income.
In summary, gains from the sale or exchange of assets are considered as revenue of business, but they are not considered as operating revenue. They are recognized in the income statement as other income or gains, and their accounting treatment depends on the nature of the asset and the method of disposal.
Gains from the sale or exchange of assets are not considered as revenu...
False: Gains from the salary or exchange of assets are considered as the revenue of the business . But this revenue is not in the ordinary course of business so it is capital receipts
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