Question

The gross inflow of economic benefits is referred to as ________.

• A. Income
• B. Capital
• C. Asset
• D. Bank overdraft A/c

Answer 1

The correct option is A Income

Option A is correct. Income includes both revenues and gains. Capital refers to amount invested in the business. It is not inflow of benefits. It is the amount invested by the owner in business. Assets refers to things which have future economic value and bank overdraft is the amount withdrawn in excess of the amount deposited in bank. So, inflow of economic benefits is referred to as Income.