Discussions 1-Module 6: Answer the following question (About 150 words) Discuss the four income statement elements defined by SFAC No. 6 with appropriate examples. 2-Module 7: Answer the following...

Solution 1:
The four income statement elements as defined in the SFAC No. 6 are discussed as below:
1) Revenues: Revenues are the amount which a company earns by selling the goods or rendering services to its customers (Harold Averkamp). It is recorded as and when it is earned and the revenue is categorized into two category i.e. operating and non operating revenue. For example sale of merchandise, interest income, etc.
2) Gains: Gains are referred as the increase in the net asset from the transactions of the entity and from the all other transactions. For example gain on sale of plant and machinery.
3) Expenses: Expenses are the cost which is reported in the income statement and this is the cost of using the assets. This is also classified as operating and non operating expenses. For example cost of goods sold, etc.
4) Losses: Losses are recorded in the income statement when there is decrease in the net assets from the transaction of the company. For example loss on the disposal of assets.
Solution 2:
The three main section of the cash flow statements are discussed as below-
1) Cash flow from operating activities: It comprises of the cash received from customers and cash used...