70.2K

Verified Solution

Link Copied!

on does ouch as inventorwork definition of assets after assets and liabilities, not broadly define ales, A researcher Codificatssets, such as inventory or receivables. Ay topics do define specific to the nonauthoritative, Conceptual Framework me Be aware that while the fic guidance is not available within the Codification. after that more specific 3: Revenues, Expenses, and Gains nes the following guidance defining revenues, expenses, and S 6 includes CON6 are inflows or other enhancements of assets of an entity or settlements ot Revenues Revenues liabilities (or a combination of both) from delivering or producing goods vices, or other activities that constitute the entity's ongoing major or central operations. Characteristics of Revenues 9 Revenues represent actual or expec 7 ted cash inflows (or the equivalent) that have occurred or will eventuate as a result of the entity's ongoing major or central operations. The increased by revenues may be of various kinds-for example, cash, claims against tomers or clients, other goods or services received, or increased value of a product result- ing from production. Similarly, the transactions and events from which revenues and the revenues themselves are in many forms and are called by various names- -for example, output, deliveries, sales, fees, interest, dividends, royalties, and rent- depend- assets cus- ing on the kinds of operations involved and the way revenues are recognized. Expenses 80. Expenses are outflows or other using up of assets or incurrences of liabilities (or a com- bination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations Characteristics of Expenses 8I. Expenses represent actual or expected cash outflows (or the equivalent) that have occurred or will eventuate as a result of the entity's ongoing major or central operations The assets that flow out or are used or the liabilities that are incurred may be of various for example, units of product delivered or produced, employees' services used kilowatt hours of electricity used to light an office building, or taxes on curent income Similarly, the transactions and events from which expenses arise and the expenses them- selves are in many forms and are called by various names-for example, cost of good sold, cost of services provided, depreciation, interest, rent, and salaries and wages ing on the kinds of operations involved and the way expenses are recogn zed

Answer & Explanation Solved by verified expert

See Answer