Under the current-operating concept, increases in equity from peripheral or incidental transactions (transactions other than sales of products, merchandise, or services) are referred to as:
A)gains.
B)revenue.
C)comprehensive income.
D)accruals.

Question

Quizplus · Accepted Answer

Gains refer to increases in equity from peripheral or incidental transactions, while revenue refers specifically to increases in equity from the sale of products, merchandise, or services. Comprehensive income includes all changes in equity during a period, including gains and losses from non-operating activities, while accruals refer to the recognition of expenses or revenues in financial statements before cash is exchanged.

Under the Current-Operating Concept, Increases in Equity from Peripheral or Incidental