A retailer purchases a building next door for possible expansion; in the meantime,the retailer rents the store to others.The rent the retailer collects would be considered other income and expenses.

Question

Quizplus · Accepted Answer

This statement is true. The rental income earned by the retailer from the building they purchased would be considered as other income, while the expenses incurred in maintaining and renting out the building would be considered as other expenses.

A Retailer Purchases a Building Next Door for Possible Expansion;