Which of the following statements about income is not true?
A) Income includes capital contributed by owners of the entity.
B) Income can be in the form of decreases of liabilities.
C) Income arises when there is control over the increase in economic benefits.
D) Income results in increases in economic benefits.

Question

Quizplus · Accepted Answer

Income does not include capital contributed by owners of the entity, as this is classified as equity. Income only includes economic benefits earned through the entity's operations or investments.

Which of the Following Statements About Income Is Not True