In Distinguishing Between Revenues and Gains, Which of the Following

question 82

Multiple Choice

In distinguishing between revenues and gains, which of the following statements is not true?

• A)More gains than revenues are beyond the entity's control.
• B)Gains are associated more with peripheral, nonoperating activities than are revenues.
• C)GAAP does not provide precise distinctions between revenues and gains.
• D)Revenues are reported net (rather than gross)more often than gains.

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Definitions:

Firm's Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Inventory

The total amount of goods and materials held by a business intended for sale or production.

Scheduling

The process of planning and organizing tasks or events by assigning them to specific times or periods.

Operations

The day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders, covering everything from manufacturing to administration.