Case Interview Prep

Answer - A - The revenue section of the income statement shows revenue from primary activities, revenue from secondary activities, and gains recognized by the business.

Key Takeaway: Income statements contain all elements of income within the revenue section, including those from a business’ primary activity. For example all elements of an income could include: sales (revenue or income from the primary activity); renting out unused space (revenue or income from a secondary activity); and the sale of a long term asset, such as land (a gain recognized by the business).