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 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)all of the above

Question

Quizplus · Accepted Answer

All the statements provided are true. A) Revenues and expenses indeed result from the recurring, primary operating activities of a business, highlighting the core operations that generate most of the company's income. B) Income items, which include revenues and expenses, are related to the ordinary, recurring operating activities of the firm, emphasizing the regularity and centrality of these activities to the business. C) Gains and losses are typically recognized from activities that are either peripheral to the main business operations or are nonrecurring, distinguishing them from the regular flow of revenues and expenses. D) The reporting distinction where revenues and expenses are reported at gross amounts, while gains and losses are reported at net amounts, is also accurate, reflecting the different nature and implications of these items for financial reporting and analysis.

USGAAP and IFRS Distinguish Between Revenues and Expenses on the One