A credit that is realized through an entity's ordinary activities would be treated as
A) a gain.
B) revenue.
C) other income.
D) other comprehensive income.

Question

Quizplus · Accepted Answer

Revenue is recognized through an entity's ordinary activities, and a credit realized through those activities would also be considered revenue. Gains typically involve the sale of assets outside of an entity's ordinary activities, other income refers to non-operating income, and other comprehensive income includes items such as unrealized gains or losses on available-for-sale securities.

A Credit That Is Realized Through an Entity's Ordinary Activities