ACCA FA · Chapter 2 · Question 10 of 10
Which of the following is NOT income as defined in the Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Additional capital introduced by the owner of the business
Explanation
Income is an increase in assets, or decrease in liabilities, that results in an increase in equity other than contributions from holders of equity claims. Capital introduced by the owner increases equity but is a contribution from the owner, so it is excluded from income. Sales revenue, interest received and gains on disposal are all income.
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