Purchase Solution

Differences in Revenues/Gains; Expenses/Losses

Not what you're looking for?

Ask Custom Question

What is the major distinction between revenues and gains? What is the major distinction between expenses and losses?
and what is the basis for distinguishing between operating and non-operating items?

Purchase this Solution
Solution Summary

The solution details the major differences between revenues and gains and between expenses and losses.

Solution Preview

The difference between revenues and gains is the relative ability to repeat the source of the income in the future. Revenues stem from normal operations and represent a steady stream of income to a firm. An example would be the money earned from the sale of a dozen doughnuts in a bakery.

Gains are one-time events resulting in positive cash flow to a firm. An example would be a doughnut store that owns a piece of land that it bought for $50,000 and sold for $65,000. The business would realize a gain of $15,000 but from a ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

View More Free Quizzes
Related BrainMass Solutions

  • Accounting Explanation (Revenues, Gains, Expense and Losses)

    The solution explains the differences between revenues and gains and expenses and losses.

  • Temporary differences examples

    recognition in financial income; (2) Expenses or losses that are deductible after recognition in financial income; (3) revenues or gains that are taxable before recognition in financial income; (4) expenses or losses that are deductible before recognition

  • Calculate Revenue

    Answer: Since there were no gains or losses during the month, revenues = expenses + net income = 156,000 + 42,000 = 198,000 This solution shows how to calculate the revenues for a company in a given month, provided with the values from their cash receipts

  • Multiple Choice Questions for Income Statements

    Expenses or losses that are deductible for tax after they are deductible for book. c. Revenues or gains recognized for book, but never included in taxable income. d. Revenues or gains that are taxable before they are recognized for book. 3.

  • Modified Accrual Basis of Accounting

    A Statement of Revenues, Expenses, and Changes in Fund Net Assets should include which of the following in addition to operating revenues and operating expenses and ending Net Assets? a) Nonoperating revenues and expenses.

  • Earnings according to the FASB's conceptual framework...

    To quote the "In Concepts Statement No. 5, the FASB explored the relationship between earnings and comprehensive income. It noted that both have the same broad components: revenues, expenses, gains, and losses.

  • Translation exposure, locational arbitrage

    41040 Multiple choice questions: translated income gains and losses , locational arbitrage (40) In most cases, translated income gains and losses due to changes in foreign currency values are reported as _______ when using FASB-52.

  • Financial Statement Analysis

    Net income is the excess of all revenues and gains for a period over all expenses and losses of the period. Net loss is the excess of expenses and losses over revenues and gains for a period.

  • Uncollectible Accounts and Tax Consequences for Business

    The revenues/gains may be delayed for financial purposes but recorded for tax purposes. The expenses/losses may be recorded for financial purposes but delayed for tax purposes.

View More Related Solutions