Question

Mcdonald’s will recognize a gain if it generates an amount of revenue that is higher than its operating expenses. This statement is.

Answer 1

McDonald's will recognize a gain if it generates an amount of revenue that is higher than its operating expenses. This statement is False.

• Gains are advantages produced by non-operating activity. For instance, McDonald's runs a fast food restaurant. Its main business activity is providing food to clients. Nevertheless, McDonald's engages in operations unrelated to the sale of burgers, fries, etc.
• For instance, although not being in the real estate industry, the corporation does buy and sell land and structures that house its restaurants. McDonald's would benefit by $30,000 ($150,000 - $120,000) if it sold a piece of land for $150,000 instead of just $120,000. Gain is the term used to describe this $30,000 profit from a non-operating activity. Losses are the costs incurred as a result of non-operating operations.
• For instance, the company would lose $20,000 ($100,000 - $120,000) if McDonald's had to sell the land it paid $120,000 for for $100,000. In conclusion, typical business activities generate revenues and expenses, while non-operational occurrences generate gains and losses.

Thus the answer is false.

To learn more about revenues and expense, refer: brainly.com/question/13738783

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