The difference between asset increases and asset decreases from operating a business is called income or earnings.

Question

Quizplus · Accepted Answer

Income or earnings is the difference between asset increases and asset decreases from operating a business. This is because when a business earns more revenue and incurs fewer expenses, its assets increase, whereas when it incurs more expenses than revenue, its assets decrease. Therefore, income or earnings is the net amount of the difference between these increases and decreases.

The Difference Between Asset Increases and Asset Decreases from Operating