1. In an accrual-based transactional approach, net income is typically defined as
a. revenues - expenses + gains + losses
b. revenues - expenses
c. revenues - expenses + gains – losses
d. increase in net assets from non-owner transactions
2. Realization of revenue occurs when
a. the item is formally recorded and reported in the financial statements
b. a company sells goods or provides a service.
c. the actual exchange of noncash resources into cash
d. when a transaction is both realized and realizable.