PRC-1 · Chapter 1 · Question 74 of 100
According to the conceptual framework, 'Income' arises during an accounting period from an increase in assets or a decrease in a liability that directly results in:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) An increase in equity, other than contributions from the owner.
Explanation
Income is defined as an increase in economic benefits during the accounting period in the form of inflows or enhancements of assets, or decreases of liabilities, that result in an increase in equity (other than those relating to owner contributions).
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