Gains Differ from Revenues Because Gains

question 30

Multiple Choice

Gains differ from revenues because gains:

• A)are not a result of the entity's ongoing, central operations.
• B)do not have to be realized.
• C)are reported as income from operating activities.
• D)do not involve any offsetting costs or expenses.

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Definitions:

Note

A financial document that represents a promise to pay back a loan or debt within a specified timeframe.

Unearned Subscriptions

Income received in advance for subscriptions that have not yet been fulfilled. This is recognized as a liability until the service is rendered.

Subscription Revenue

Income generated from customers who pay a recurring price at regular intervals for access to a product or service.

Interest Accrue

The accumulation of interest expenses or revenues that have been incurred but not yet paid or received in cash.