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: 11


Ideally, investments by owners usually differ from revenues as well gains in the sense that they represent transfers by owners to the enterprise, and they do not in anyway arise from activities intended to produce income. On the other hand revenuers differ from gains in the sense that they usually arise from the entity's ongoing major or even central operations. Normally, gains arise from peripheral or incidental transactions.

Work Step by Step

Collectively, its important to note that these three aspects are very crucial to organizations since they tend to increase the wealth as well assets of the shareholders as well as the organization's respectively.
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