Reference no: EM132620647

Question - Consider each of the following transactions and examine whether they satisfy the income definition criteria (Ignore the fact that no monetary value has been assigned to the transactions):

To note: To satisfy the income definition criteria there must be:

An increase in economic benefits during the reporting period via an increase in assets or reduction in liabilities;

Resulting in an increase in equity;

Which must not be related to contributions from equity participants (i.e. owners).

a. Received cash for services to be provided in the next reporting period (Yes)

b. Borrowed money from a bank (No)

c. Credit sale of goods (No)

d. Receipt of deposit for future work to be performed (Yes)

e. Obtained a bank loan and received $20 000 (No)

f. Received a grant from a government body to assist with an export program (Yes)