Article 112-3 of the PCG establishes the accrual accounting principle, which states that the income statement must summarize all expenses and income regardless of their actual payment or receipt date. This principle ensures that the result reflects the actual economic performance over the period.

The fundamental criterion for distinguishing between income and expenses is based on the economic substance of the transaction. Income enriches the company by increasing the value of its assets and generates current or future cash inflows, while an expense depletes the company by reducing the value of its assets and generates current or future cash outflows. This distinction is specified in Article 212-6 of the PCG, which states that expenditures not meeting the cumulative conditions for asset definition and recognition must be recorded as expenses.

ANC regulation 2022-06 redefined exceptional events as strictly limited to major and unusual events. Asset disposals are no longer classified as exceptional but as operating transactions. Only events outside the company's normal and foreseeable business activities are now considered exceptional.

Income is defined in Article 222-1 of the PCG as amounts or values received or receivable in exchange for the provision of goods, work, services, or benefits granted by the entity. This also includes stored or capitalized production, provision reversals, and asset disposal proceeds. They are recorded on the credit side of the income statement.

The distinction between income and expenses is fundamental for measuring performance. Income (class 7) increases equity (e.g., sales), while expenses (class 6) decrease it (e.g., purchases). Assets (class 2) represent what the company owns (e.g., fixed assets), and liabilities (class 4) represent what it owes (e.g., payables). This classification enables a comprehensive analysis of the balance sheet and income statement.

ANC regulation 2022-06, applicable from January 1, 2025, introduced significant changes to the distinction between operating and exceptional items. Exceptional charges and income are now strictly limited to major and unusual events. Asset disposals, previously classified as exceptional, are reclassified as operating items in accounts 657 and 757. Therefore, this statement is false because asset disposals are no longer considered exceptional.

According to the PCG, an expense depletes the company by reducing the value of its assets and generates current or future cash outflows. It is recorded on the debit side of the income statement. Conversely, income is recorded on the credit side. Therefore, this statement is false because an expense can only be recorded on the debit side.

Article 222-1 of the PCG defines income as amounts or values received or receivable in exchange for the provision of goods, work, services, or benefits granted by the entity. It also includes stored or capitalized production, provision reversals, and asset disposal proceeds. Charges, defined in Article 221-1, are amounts or values paid or payable in exchange for consumption made by the entity. Items that do not meet this definition of income are not considered as such. For example, expenditures not meeting the conditions for asset definition and recognition must be recorded as expenses under Article 212-6.