What arises from peripheral or incidental transaction?

Answer 1

Peripheral or incidental transactions arise from activities that are not central to a company's core operations but still contribute to its overall financial performance. These transactions may include the sale of surplus assets, interest income from investments, or one-time gains from non-operational activities. While they may not be a primary focus, they can impact a company's profitability and cash flow, and are often reported separately in financial statements for clarity. Understanding these transactions is essential for a comprehensive analysis of a company's financial health.