Which of the following statements is true?
A)Expenses and losses both represent decreases in assets or increases in liabilities; the terms can therefore be used interchangeably.
B)Expenses and revenues deal with peripheral activities,while losses and gains deal with operating activities.
C)Expenses and revenues deal with operating activities,while losses and gains deal with peripheral activities.
D)Revenues and gains both represent increases in assets or decreases in liabilities; the terms can therefore be used interchangeably.

Question

Quizplus · Accepted Answer

Expenses and revenues are directly related to the core operations of a business, such as selling goods or providing services. Losses and gains, on the other hand, typically arise from incidental or peripheral activities, such as selling an asset for more or less than its carrying amount.

Which of the Following Statements Is True