Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?

Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?



Distributions to owners differ from expenses and losses in that they represent transfers to owners, and they do not arise from activities intended to produce income. Expenses differ from losses in that they arise from the entity's ongoing major or central operations. Losses arise from peripheral or incidental transactions.


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