Can someone please explain this:?
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I am really lost.
Answer a) would be an economic detriment.
Answer b) would include writing up assets to fair market value; this would appear on the income statement.
Answer c) would include things like proceeds from issuing stock, which does not appear on the income statement.
Thanks S2000magician. I sincerely appreciate your help. I’ve a quick follow-up question, if you don’t mind. What if, B) were “enhancement of assets related to owners’ contributions” --would that be considered Income?
My pleasure.
No.
When you issue stock, you get cash, enhancing your assets. It isn’t income, however.