How should a Rent A Car company and the local phone utility report the sales revenue from auctioning their used vehicles after these have fulfilled their strategically defined useful life?

Question

Quizplus · Accepted Answer

The rental car company's primary business involves vehicles, so selling used vehicles is part of their normal operations, hence 'operating revenue'. For the utility company, selling used vehicles is not part of its primary operations (which involve providing utility services), making it 'exceptional revenue'.

How Should a Rent a Car Company and the Local