Under the Conceptual Framework, decreases in economic benefits that arise outside the ordinary course of business are known as:
A) gains.
B) losses.
C) revenues.
D) expenses.

Question

Quizplus · Accepted Answer

Losses refer to expenses that do not necessarily arise in the ordinary course of business such as the loss from a fire or flood, as well as reductions in economic benefits that are reported on a net basis such as a loss on the sale of non-current assets.

Under the Conceptual Framework, Decreases in Economic Benefits That Arise