Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Exercises - Page 72: E2-5a

Answer

Gains and losses

Work Step by Step

Gains and losses are the result of secondary activities. An example of a gain can be receiving compensation through a lawsuit while and an example of a loss can be when the company pays for compensation through losing a lawsuit.
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