i. Income is the increase in economic benefits in the form of inflows or enhancements of assets, or decreases in liabilities, that result in increases in equity, other than contributions from equity participants.

ii. Characteristics of Capital Income:

• It is not frequently earned.
• It arises from the sale of non-current assets such as property, plant, and equipment.

Characteristics of Revenue Income:

• It is frequently earned from the sale of goods or services.
• It arises from normal business activities, such as sales of goods or rendering of services.