The importance of revenue to a business enterprise has caused much discussion among accountants as to how the term "revenue" should be defined.The FASB in Statement of Financial Accounting Concepts No.6,"Elements of Financial Statements," defines revenue as "inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both)from delivering or producing goods,rendering services,or other activities that constitute the entity's ongoing major or central operations."
Evaluate the soundness of the definition of the term "revenue" provided by the FASB in Statement of Financial Accounting Concepts No.6.

Question

Quizplus · Accepted Answer

The Answer of The importance of revenue to a business enterprise has caused much discussion among accountants as to how the term "revenue" should be defined.The FASB in Statement of Financial Accounting Concepts No.6,"Elements of Financial Statements," defines revenue as "inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both)from delivering or producing goods,rendering services,or other activities that constitute the entity's ongoing major or central operations."
Evaluate the soundness of the definition of the term "revenue" provided by the FASB in Statement of Financial Accounting Concepts No.6.

The Importance of Revenue to a Business Enterprise Has Caused