Why Commission received for sale of goods in case of a trading firm is considered as an Operating activity as commission is not a part of a trading activity of a firm? Explain
Dear Student
The trading firm has a main business of Purchase and Sell Since selling of goods is an operating activity, A commission earned on the sale of these goods only is also considered as operating activity.
It is so because the commission is earned on the sale of goods only which is basic principle business activity.
Hope this helps
Please get back to us in case of any query
Regards
The trading firm has a main business of Purchase and Sell Since selling of goods is an operating activity, A commission earned on the sale of these goods only is also considered as operating activity.
It is so because the commission is earned on the sale of goods only which is basic principle business activity.
Hope this helps
Please get back to us in case of any query
Regards