Explain the difference between revenues and gains.

Question content area bottom

Part $1$

A$.$

Revenues are increases in equity$($net assets$)$ from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from revenues or investments by owners. Gains are inflows or other enhancements of assets of an entity or settlements of its liabilities$($or a combination of$$ both$)$ from delivering or producing$$ goods, rendering$$ services, or other activities that constitute the$$ entity's ongoing major or central operations.