Changes in equity that result from the company's central business operations are ________.
A)revenues and gains
B)gains and losses
C)revenues and expenses
D)losses and expenses

Question

Quizplus · Accepted Answer

Changes in equity that result from the company's central business operations are called revenues and expenses. Revenues increase equity while expenses decrease equity, and together they determine net income or loss for the period. Gains and losses are not necessarily related to the central business operations and can result from incidental transactions such as sale of fixed assets or investment securities.

Changes in Equity That Result from the Company's Central Business