A describe the elements of the balance sheet: assets, liabilities, and equity; Flashcards
Describe the elements of the balance sheet: Assets, Liabilities, Equity.
1
Q
Balance Sheet Elements
A
Assets
Liabilities
Equity
2
Q
Assets
A
Resources controlled as a result of past transactions that are expected to provide future economic benefits
3
Q
Liabilities
A
Obligations as a result of past events that are expected to require an outflow of economic resources
4
Q
Equity
A
AKA ‘net assets’: the owners residual interest in the assets after deducting liabilities from assets
