The gross inflow of economic benefits during the period arising from ordinary activities which result in increases in equity other than contributions from equity holders is known as:

Question

Quizplus · Accepted Answer

The definition given in the question matches the definition of revenue, which is the gross inflow of economic benefits during a period arising from the ordinary activities of an entity that results in an increase in equity, other than increases relating to contributions from equity holders. Option A is incorrect because an asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow. Option B is incorrect because a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of economic resources. Option D is incorrect because an expense is a decrease in economic resources that results in a decrease in equity, caused by the outflow of resources incurred in the entity's ordinary activities during a period.

The Gross Inflow of Economic Benefits During the Period Arising