In the context of components of financial statements, the primary difference bet
ID: 2336861 • Letter: I
Question
In the context of components of financial statements, the primary difference between gains and revenues is _________.
a
nature of the activities that resulted in the transactions involved
b
costs and benefits of disclosure methods for the transactions involved
c
likelihood that the transactions involved will recur later
d
materiality of the amounts involved
a
nature of the activities that resulted in the transactions involved
b
costs and benefits of disclosure methods for the transactions involved
c
likelihood that the transactions involved will recur later
d
materiality of the amounts involved
Explanation / Answer
a. nature of activities that resulted in the transactions involved.
Revenue is the gross amount received in the due course of ordinsry business whereas gain is the net result of the transactionss. i.e revenue less expenses or cost