Accounting Elements

Question 1

Liabilities

Answer 1

a present obligation of the entity (as a result of past events), the settlement of which is expected to result in an out ow of economic bene ts

Question 2

Owners equity

Answer 2

owner’s equity is what is left over for the owner once a firm has met all its liabilities, or the owner’s claim on the firm’s assets.

Question 3

Assets

Answer 3

a resource controlled by the entity (as a result of past events), from which future economic bene ts are expected