1. Does Operating Profit includes Gain from disposal PPE?
2. Are Operating Profit and Operating Income exactly the same thing?
Ask the Tutor ACCA SBR
Operating Income
1 - No. Disposing of assets is not in the ordinary course of operations of the entity.
2 - No. Operating income is the income generated from operating activities whereas operating profit is that operating income less the expenses directly incurred in generating that income
If I sell for $500 goods that I bought for $200, my operating income is $500 but my operating profit is a lowly $300
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