Wolfe Supply Co. sells hiking and other outdoor equipment. It also sells a few trail books and outdoor guides about the area. In their Income Statement, the revenue from the books and guides would probably be recorded as:

Question

Quizplus · Accepted Answer

The revenue from the books and guides is not a part of the company's primary business operations of selling outdoor equipment, therefore it cannot be recorded as operating income. It is also not an expense, so it cannot be recorded as other expenses. Extraordinary income is reserved for significant and unusual events, which selling a few books and guides does not qualify as. Therefore, the only appropriate option is to record it as "other income."