The Conceptual Framework Defines Income as Follows

question 14

Multiple Choice

The Conceptual Framework defines income as follows

• A)Increases in economic benefits during the accounting period in the from of inflows or enhancements of assets or decreases of liabilities that result in increases in equity,other than those relating to contributions from equity participants
• B)The gross inflow of economic benefits during the period arising in the course of ordinary activities of an entity when those inflows result in increases in equity,other than increases relating to contributions from equity participants
• C)Income that arises in the ordinary course of business and is referred to by a variety of different names,including sales,fees,interest,dividends and royalties
• D)Income is not defined in the Conceptual Framework

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Definitions:

Emotionally Charged

Pertains to situations, events, or information that invoke strong emotions or feelings.

Objectivity

The practice of presenting information in a fact-based, unbiased manner, without letting personal feelings or opinions influence.

Hypotheses

Proposed explanations made on the basis of limited evidence as starting points for further investigation.

Possible Explanations

Various theories or reasons presented to understand or justify an occurrence, phenomenon, or decision.