Question

Corporation A sells coffee bottles to all, starbursts, locations in the United States. Corporation B sells dinner paper plates to Olive Garden. Corporation A charges $1 for a pack of 100 bottles and Corporation B charges $3 for 1 dinner paper plate. Tell us exactly what information you would need to determine whether Corporation A or Corporation B has higher annual revenue and explain how you would calculate these two figures.

Answer 1

Here we have to find the annual revenue of the company so first of all I would like to explain what is an annual revenue, it is the sum of all the revenue that is business and during its fiscal year. We can find the annual revenue by adding all the revenue together on the annual company income statement. Now where to find each and every account depends upon the company style of income statement why they are using. The account of maybe of operating revenue or non operating revenue operating revenue and from the primary businesses function of the company mobile non-operating revenues generally earn from the investment.

Now based upon the learning now I would like to say both the companies whether it is of bottle seller or or dinner plate seller for calculating the annual revenue they will require the annual company income statement the type of the account of revenue whether operating or non operating has to be identified for calculating the revenue generated in its fiscal year.