Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Income on the multiple-step income statement.

Question

Quizplus · Accepted Answer

This is true. Other income is reported separately on the income statement because it is not related to the normal operations of the business. Examples of other income include gains from the sale of fixed assets, gains from investments, and settlements from lawsuits.

Income That Cannot Be Associated Definitely with Operations, Such as a Gain