The primary difference between revenues and gains is:
A) Gains are increases in net assets from peripheral activities while revenues are increases from ongoing activities.
B) Revenues increase operating income and gains have no impact on net income.
C)Revenues cause increases in net assets as a result of peripheral activities and gains cause increases through ongoing activities.
D)Gains result in an increase in operating income whereas revenues do not impact operating income.

Question

Quizplus · Accepted Answer

The primary difference between revenues and gains is that revenues are derived from ongoing business activities like sales of products and services, while gains result from peripheral or incidental transactions. For example, selling a piece of equipment for more than its book value would result in a gain. However, selling products for the usual course of business would result in revenue. Therefore, gains refer to increases in net assets due to peripheral activities, while revenues refer to increases in net assets due to ongoing business activities.

The Primary Difference Between Revenues and Gains Is