CAF-1 · Chapter 9 · Question 2 of 15
Which of the following falls under the definition of 'Income' according to the Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Increases in assets or decreases in liabilities that result in an increase in equity, other than contributions from equity holders.
Explanation
Income is defined as increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from equity participants.
More Conceptual and Regulatory Framework MCQs
- Q4Under the 'Physical Capital Maintenance' concept, when is a profit considered to be earned?
- Q5Which organization acts as the overall supervisory body for the standard-setting process, appointing trustees and monitoring their…
- Q6According to the Conceptual Framework, 'materiality' is an entity-specific aspect of which fundamental qualitative characteristic?
- Q7How is the total carrying amount of 'equity' measured in general purpose financial statements?
- Q8To be a perfectly 'faithful representation', a depiction in financial statements should possess which three characteristics?