Question

What is the formula to calculate the income from operations?

1) Income from operations + other revenue and gains - other expenses and losses
2) Income from operations + other revenue and gains + other expenses and losses
3) Income from operations - other revenue and gains - other expenses and losses
4) Income from operations - other revenue and gains + other expenses and losses

Answer 1

The formula to calculate income from operations is Income from operations + other revenue and gains - other expenses and losses.

Step-by-step explanation:

The formula to calculate the income from operations is Income from operations + other revenue and gains - other expenses and losses.

This means that you add the income from operations to any other revenue and gains, and then subtract any other expenses and losses.

For example, if a company has an income from operations of $10,000, other revenue and gains of $5,000, and other expenses and losses of $2,000, the income from operations would be calculated as:

Income from operations = $10,000 + $5,000 - $2,000 = $13,000.