Accounting Elements

Question 1

Current Assets

Answer 1

a present economic resource
controlled by an entity as a
result of past events that is
reasonably expected to be
converted to cash, sold or
consumed within the next
12 months

Question 2

Current Liabilites

Answer 2

a present obligation of an
entity to transfer an economic
resource as a result of past
events that is reasonably
expected to be settled within
12 months

Question 3

Non-current Assets

Answer 3

a present economic resource
controlled by an entity as
a result of past events that
is not held for resale and is
reasonably expected to be
used for more than the next
12 months

Question 4

Non-Current Liability

Answer 4

a present obligation of an
entity to transfer an economic
resource as a result of past
events that is not required to be
settled within 12 months

Question 5

Revenues

Answer 5

increases in assets or
decreases in liabilities that
result in increases in owner’s
equity, other than those relating
to contributions from the owner

Question 6

Expenses

Answer 6

decreases in assets or
increases in liabilities that
result in decreases in owner’s
equity, other than those relating
to distributions to the owner

Question 7

Drawings

Answer 7

Drawings represents the value of the assets the owner has withdrawn from the
business. It is a negative owners equity

Question 8

Owners Equity

Answer 8

the residual interest in the
assets of an entity after the
deduction of its liabilities