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Differences in Revenues/Gains; Expenses/Losses

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?

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 ...

Solution Summary

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

$2.19