okay excellent let’s reinforce what we
learned in our previous lesson with an exercise I’ll give you the name of a
company and a type of income it earned and it will be your task to decide
whether that income should be registered as revenue or other revenues okay good
here we go SolarCity Tesla’s subsidiary selling photovoltaic groups and engaged
in photovoltaic services earns an income related to a government subsidy for
green energy in one of its installations is this revenue or other revenues I’ll
give you a second to think if you need more time you can simply pause the video
ready okay Solar cities core area of activity is photovoltaic projects which
are often subsidized with a government fee building these plants and collecting
this type of revenue is the firm’s main business therefore this is a type of
revenue for Solar City I’m sure you got it right here’s the next one
Google the global search engine leader company earns an income related to the
sale of electricity produced on the roof of its Mountain View headquarters
building where the company installed 1.6 megawatts of photovoltaic panels is this
a source of revenue or other revenue I’m sure you nailed it right producing solar
energy is into Google’s core business it sells digital products therefore this
revenue will be registered as other revenue this covers what we wanted to
show here the same or similar type of revenue can be registered as core
revenue for one company and other revenue for a different company it
depends whether the income earned derives from a firm’s main area of
activity