Accounting elements Flashcards
1
Q
Assets
A
Economic resources under the control of the entity, which has the potential to produce future economic benefits.
2
Q
Liabilities
A
Obligations to transfer resources to another entity.
3
Q
Owners equity
A
The residual value of the assets of an entity after deducting all its liabilities..
4
Q
Revenue
A
Increase in assets or decrease in liabilities, that result in an increase in owners equity.
5
Q
Expenses
A
Decreases in assets, or increases in liabilities, that result in a decrease in owners equity.
6
Q
Gst refund/ GST liability
A
When a business pays GST (purchase of items) decreases liability or creates an asset.
When a business collects GST in increases the liability.