Gains are defined as
A) increases in economic resources resulting from an entity's ordinary activities.
B) decreases in economic resources resulting from an entity's ordinary activities.
C) the residual interest remaining after liabilities are deducted from assets.
D) increases in equity resulting from an entity's peripheral or incidental transactions.

Question

Quizplus · Accepted Answer

Gains are increases in equity resulting from an entity's peripheral or incidental transactions, such as the sale of assets. Choices A, B, and C all refer to other accounting concepts: A refers to revenues, B to losses, and C to equity.

Gains Are Defined as