When comparing revenues to gains…
A peripheral transaction is one that isn’t related to regular operations in the business. Using the info you gave, an example would be this: A company is in the business of selling books. They sell books and receive money in return. That’s revenue. Then, say they sell a piece of their machinery used to sort books (or whatever) for more than the depreciated book value. In that case, they would make money on the sale of machinery, but since selling machinery is not what they are in business to do, they would recognize that money as a gain, not as revenue. The same would be true if they sold investments that they were holding and had a gain on them. Peripheral transactions are those that are outside the normal course of business.
Define Peripherals
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Youtube views can also be seen as a form of peripheral transaction. While views are a measure of audience engagement and can indirectly impact revenue through factors such as ad impressions and watch time, they are not a direct source of income for the platform. YouTube generates revenue primarily through advertising, with views serving as a metric to attract advertisers and determine ad placement. Therefore, views can be considered a peripheral transaction in the sense that they are not the main revenue-generating activity of YouTube but rather a metric that contributes to its overall revenue stream.
1) D is correct, framework includes, objectives of accounting, the elements and the GAAP principles. 6) Not sure what they mean by peripheral, but if it’s a decrease in net assets because of retirement or salvaging then yes, it would be C. If it is from amortization and subsequent decrease in it’s net value it is an expense, or D. 7) A, reliable for sure, 100%. 9) I would say that it is C. Normally company’s do not give a detailed MD&A every quarter. It’s worthless because every 90 days they’re supposed to give another forecast and detailed analysis on the projection of the company? No. It is set for annual reports primarily. Some companies do MD&A’s quarterly, but they’re like a paragraph in length. Regular MD&A’s are like 8 pages. Answer would be C. If you need future help subscribe to my youtube channel, I answer all my comments and give detailed analysis of intro to financial accounting. Good luck.
What Is A Peripheral
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