Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Questions - Page 62: 10


Ideally, distribution to owners differs from expenses and losses in the sense that they make a representation of transfers to owners and they do not arise from activities or issues intended to produce income. Expenses they differ losses in the sense that they arise from the entity's ongoing major or central operations Losses on the other hand arise from peripheral or rather incidental transactions.

Work Step by Step

Most importantly, distribution to owners expenses and losses are aspects of financial accounting that need to be keenly understood since they foster comparability and consistency of an enterprise.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.