Which of the following types of income would be considered to be permanent earnings?
A)A gain on the sale of equipment resulting from the discontinuance of a business segment.
B)Income from a business segment that is expected to be sold within the next year.
C)Income resulting from the successful settlement of a major lawsuit.
D)Income resulting from a store opened during the most recent fiscal year.

Question

Quizplus · Accepted Answer

Income from a newly opened store is likely to be recurring and sustainable over the long term, making it a source of permanent earnings. The other options are one-time or non-recurring events and therefore not considered to be permanent earnings.

Which of the Following Types of Income Would Be Considered