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Operating Income

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Operating Income

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • November 23, 2015 at 7:49 pm #284783
    Oscar
    Member
    • Topics: 25
    • Replies: 9
    • ☆

    1. Does Operating Profit includes Gain from disposal PPE?
    2. Are Operating Profit and Operating Income exactly the same thing?

    November 23, 2015 at 8:32 pm #284795
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    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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