Under the Conceptual Framework 'increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity,other than those relating to contributions from equity participants',is the definition of:

Question

Quizplus · Accepted Answer

The definition provided describes the increase in economic benefits in the accounting period in the form of inflows or enhancements of assets or decreases in liabilities, which is the definition of income. Choice B) Asset and C) Liability are related to the elements of financial statements, but the definition given does not fully describe those concepts. Choice D) Expense is the opposite of income as it represents decreases in economic benefits during the accounting period.

Under the Conceptual Framework 'increases in Economic Benefits During the Accounting