Elements Achieved

Question 1

What is the definition of an Asset

Answer 1

A resource PRESENTLY controlled by the entity as a result of PAST events and from which FUTURE ECONOMIC BENEFIT are expected to flow to the entity.

Question 2

What is the definition of a liability

Answer 2

Liabilities are PRESENT obligations of the entity arising rom Past events, the settlement of which is expected to result in an outflow of FUTURE ECONOMIC BENEFIT.

Remember PPF

Question 3

What is the definition of owners entity

Answer 3

Entity is the residual interest in the assets of the entity after deducting all its liabilities.

Remember Eq = A - L

Question 4

What is the definition of income.

Answer 4

Increases of economic benefits during the accounting period in the form of inflows or enhancements of assets (or decreases in liabilites) that result in increases in the entity, other than those relating to contributions from equity participants.

Remember:
I	Inflow
I	Increase in Equity
I	Increase in Asset or Decrease in Liability
I
NC	Not by contribution by owner

Question 5

What is the definition of Expenses

Answer 5

Decrease in economic benefits during the accounting period in the form of outflows or depletions of assts or incurrences in liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

Remember 
D
D
D
D
ND