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Besides the dollar amount of sales, what else counts as revenues?
AOnly the proceeds from selling fixed assets
BIncome from interest, dividends and rents
CLoans received from the firm's bankers
DCapital contributed by the firm's owners
Answer & Solution
Correct answer: B. Income from interest, dividends and rents
1. Revenues are the dollar amount of sales plus any other income received.
2. Interest, dividends and rents are named as such other sources.
3. A loan is a liability rather than income, so borrowed money never enters revenues.
4. Capital put in by owners is recorded in owners' equity, not on the income statement.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.5 The Income Statement_
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