The two categories of income, as specified in the Conceptual Framework, are:
A) income and revenue.
B) income and gains.
C) revenue and gains.
D) revenue and profits.

Question

Quizplus · Accepted Answer

The Conceptual Framework for Financial Reporting specifies two categories of income: revenue and gains. Revenue arises in the course of the ordinary activities of an entity and is often referred to in terms of sales, fees, interest, dividends, royalties, and rent. Gains represent other items that meet the definition of income and may, or may not, arise in the course of the ordinary activities of an entity.

The Two Categories of Income, as Specified in the Conceptual