U.S.GAAP and IFRS distinguish between revenues and expenses on the one hand and gains and losses on the other.Which of the following is/are not true?
A)Revenues and expenses result from the recurring, primary operating activities of a business.
B)Income items include the ordinary, recurring operating activities of the firm.
C)Gains and losses result from either peripheral activities or nonrecurring activities.
D)The reporting of revenues and expenses are at gross amounts, and firms report gains and losses at net amounts.
E)Gains and losses result from the recurring, primary operating activities of a business.

Question

Quizplus · Accepted Answer

The statement "Gains and losses result from the recurring, primary operating activities of a business" is not true. Gains and losses typically result from either peripheral activities or nonrecurring activities, and are not considered to be part of the ordinary, recurring operating activities of a firm.

USGAAP and IFRS Distinguish Between Revenues and Expenses on the One