Elements-Definitions

Question 1

What is the definition of and Asset?

Answer 1

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

Question 2

What is the definition of a Liability?

Answer 2

Liabilities are PRESENT obligations of the entity arising from PAST events, the settlement of which is expected to result in an outflow of FUTURE ECONOMIC BENEFITS. REMEMBER PPF

Question 3

What is the definition of Owners Equity?

Answer 3

Equity is the residual interest in the assets of the entity after deducting all its liabilities. REMEMBER Equity=Assets-Liabilities

Question 4

What is the definition of Expenses?

Answer 4

Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets of (incurrences in liabilities) that result in increases in equity, other than those relating to contributions from owners. D,D,D,D,ND

Question 5

What is the definition of Income?

Answer 5

Increases in economic benefits during the accounting period in the form of inflows of assets or (decreases in liabilities) that result in increases in equity, other than those relating to contributions from owners. REMEMBER I,I,I,NC