Which of the following statements about the Conceptual Framework's definition of income is correct?
A) Income is always in the form of enhancements of assets.
B) Income results in decreases in equity.
C) Income includes contributions from owners.
D) Income includes gains from non-ordinary business activities.

Question

Quizplus · Accepted Answer

Income, as defined by the Conceptual Framework, includes both revenue and gains. Gains can arise from non-ordinary business activities, such as selling an asset for more than its carrying amount.

Which of the Following Statements About the Conceptual Framework's Definition