Question

Explain the major difference(s) between revenue and gains and expenses and losses.

Please be as detailed as possible.

Answer 1

Answer:- Difference between revenue and gain:- Revenue is the amount earned from a company's main activities such as selling merchandise/products or providing services. In other words, revenue is the term used to describe income earned through the provision of a business' primary goods or services.

A gain results from a peripheral activity, such as selling the old assets. A gain is the amount received that is in excess of the asset's carrying amount (book value). Any time a entity produces profit or realizes increased value through secondary sources, such as lawsuits, investments or disposal of assets, it is called a gain.

Difference between expenses and losses:- An expense is a cost used up in earning revenues in a entity core operations. Expenses includes costs used up during the accounting period such as interest expense, insurance expense, and depreciation expense.

A loss is realized whenever a company loses money through secondary activity. A loss is associated with a incidental transaction. Outflows of net assets from peripheral or side-line operations. Losses occur when assets are sold for less than their current carrying or book value.