5 DEF

Question 1

Definition of Assets

Answer 1

“assets” are future economic benefits controlled by the entity as a result of
past transactions or other past events.

Question 2

Definition of Liabilities

Answer 2

“Liabilities” are the future sacrifices of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or
other past events

Question 3

Definition of Equity

Answer 3

“Equity” is residual interest in the assets of the entity after deduction of
its liabilities

Question 4

Definition of Revenues

Answer 4

“Revenues” are inflows or other enhancements, or savings in outflows, of
future economic benefits in the form of increases in assets or reductions in
liabilities of the entity, other than those relating to contributions by owners,
that result in an increase in equity during the reporting period

Question 5

Definition of Expenses

Answer 5

“Expenses” are consumptions or losses of future economic benefits in the
form of reductions in assets or increases in liabilities of the entity, other than
those relating to distributions to owners, that result in a decrease in equity
during the reporting period