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What are the recognition conditions of operating income?
The recognition conditions of operating income are as follows:

1. The enterprise has transferred the main risks and rewards of commodity ownership to the buyer.

2. The enterprise neither retains the right to continue management, which is usually associated with ownership, nor controls the goods it sells.

3. Economic benefits related to the transaction can flow into the enterprise.

4. Relevant income and costs can be measured reliably.

Operating income refers to the income obtained from the main business or other businesses. Refers to the monetary income obtained by commercial enterprises in selling goods or providing services within a certain period of time. Divided into main business income and other business income. Such as commodity sales income of commercial enterprises, product sales income of production and processing enterprises, food and beverage sales income of catering industry, service income of service industry, etc.

Storage income of storage enterprises, freight income of transportation enterprises and valet transportation income. When commodity sales income occurs, it should be accounted for by the operating income account, debited by the bank deposit or cash account, and credited to the operating income account. Part-time income that does not belong to the main business scope of an enterprise shall be treated as auxiliary business income.

compose

Operating income includes main business income and other business income. Main business income refers to the income generated by the regular and main business of an enterprise. Such as the sales of products and semi-finished products and the income from providing industrial services; Income from commodity sales by commodity circulation enterprises; Ticket income, tourist income, catering income of tourism service industry, etc.

The main business income accounts for a large proportion of enterprise income, which has a decisive impact on the economic benefits of enterprises. Other business income refers to other business income other than the above-mentioned main business income. Including material sales, outsourcing goods sales, waste materials sales, waste products sales, and labor service income.