Under the Framework the statement concerning gains that is incorrect is:
A)Income is defined to include both revenue and gains
B)Gains that meet the definition of income always arise outside the course of ordinary operations
C)The definition of income includes unrealised gains
D)None of the statements is incorrect

Question

Quizplus · Accepted Answer

Gains can arise both in the ordinary course of business and outside of it. The statement that gains always arise outside the ordinary operations is incorrect. Income indeed includes both revenue and gains, and unrealized gains can be included in the definition of income, depending on the accounting framework being applied.

Under the Framework the Statement Concerning Gains That Is Incorrect