Question

Which of the following is an non-functional asset a. A package of shares in a group company held for speculation. The company’s main business is growing wheat. b. An industrial construction that is being built by a local construction company, without the roof ended, that will be used as a tangible asset. c. An industrial construction that is being built by a local construction company, without the roof ended, that will be used as goods, to be sold the same than the rest of property promotions. 2. Point out which of the following is a non-recurring income/expense/result: a. The income for the rent to a friend of a construction machine to do works in a swimming pool. b. The income from a winning ticket in the lottery. c. The incomes from the writing off a debt with the main shareholder. d. All of the answers are correct.

Answer 1

1) Solution: A package of shares in a group company held for speculation. The company’s main business is growing wheat

Explanation: Since the main business of company is growing wheat thus package of shares will be non-functional

2) Solution: The income from a winning ticket in the lottery

Explanation: A non-recurring income/expense refers to gain or loss found on a income statement of a company which is not expected to occur regularly.