Under the Conceptual Framework income includes both:
A) gains and losses.
B) revenue and gains.
C) returns and profits.
D) takings and outgoings.

Question

Quizplus · Accepted Answer

According to the Conceptual Framework, income includes revenue and gains. Gains are the increases in assets or decreases in liabilities that result from peripheral or incidental transactions or events. Revenue is the inflow of economic resources resulting from the ordinary operating activities of an entity. Therefore, choice B is the correct option because it encompasses both revenue and gains, which are the two components of income.

Under the Conceptual Framework Income Includes Both