Revenues, gains, and investments by owners are all increases in net assets. what are the distinctions among them?

Respuesta :

Investments by owners differ from revenues and gains, as in that they represent transfers by owners to the entity, and they do not arise from activities intended to produce income.

Revenues are increases in assets resulting from a business. Gains are increases in assets from out of the ordinary activities. Thus, investments by owners differ from revenues and gains.

Both revenues and gains can be considered as income or part of the income. Revenues differ from gains, as in that they arise from the entity's ongoing major or central operations. Gains arise from incidental transactions.

Hence, revenues, gains, and investments by owners are all increases in net assets.

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