Gain
Financial Accounting glossary · The Accounting Cycle & Financial Statements
Definition
Increase in equity from peripheral transactions, distinguished from revenue.
Gain in plain English
A gain is money a company comes out ahead on from a side activity — something that isn't its main business. Picture a bakery: selling bread is its everyday business (that's called revenue), but if it sells an old delivery van for $3,000 more than the van was worth on its books, that extra $3,000 is a gain. Both make the company richer (they raise "equity," the owners' stake), but accountants keep them in separate buckets so you can tell the money the business earns by DOING its job from lucky one-off boosts.
Learn these first
Related Financial Accounting terms
Financial Accounting practice questions · Financial Accounting flashcards · Financial Accounting study guide