Under the Framework the Statement Concerning Gains That Is Incorrect

question 26

Multiple Choice

Under the Framework the statement concerning gains that is incorrect is:

• A)Income is defined to include both revenue and gains
• B)Gains that meet the definition of income always arise outside the course of ordinary operations
• C)The definition of income includes unrealised gains
• D)None of the statements is incorrect

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Definitions:

Activity Measure

A metric used to quantify the level of activity, productivity, or performance in a specific area, often used in managerial accounting to allocate costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Overhead Costs

Indirect costs not directly tied to the production of goods or services, such as rent, utilities, and administrative expenses.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activity levels, providing a more accurate comparison of budgeted versus actual performance.