Under the Conceptual Framework, 'increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants', is the definition of:
A) income.
B) equity.
C) assets.
D) contributions.

Question

Quizplus · Accepted Answer

This is the definition of income according to the Conceptual Framework. Income is recognized when there is an increase in economic benefits, either in the form of inflows or enhancements of assets, or decreases in liabilities, that result in an increase in equity, other than those relating to contributions from equity participants.

Under the Conceptual Framework, 'Increases in Economic Benefits During the Accounting