1. Analyzing Operating Activities
Chapter VI

2. Measuring Accounting Income
Revenues are earned inflows or prospective earned inflows of cash that arise from a company’s ongoing business activities.
Gains are earned inflows or prospective earned inflows of cash arising from transactions and events unrelated to a company’s ongoing business activities.

3. Measuring Accounting Income
Expenses are incurred outflows, prospective outflows, or allocations of past outflows of a cash that arise from a company’s ongoing business operations.
Losses are decreases in a company’s net assets arising from incidental operations.
Net Income is regarded as the bottom line measure of income.