Elements of Financial Statements Flashcards
What kind of element is a trade receivable?
An asset
What kind of element is a trade payable?
A liability
What kind of element is tax?
Both an expense and a liability, as it depends on the kind e.g corporation tax is both
What kind of element is share capital?
Equity
What kind of element is a bank loan?
A liability
What kind of element is a computer?
An asset
What kind of element are patents?
Assets
What kind of element are employees?
None - employees are not controlled by the entity and therefore cannot be an asset. Their wages are an expense
What kind of element is a customer deposit?
A liability
What kind of element is a purchase order?
None - until one party to the contract performs (supplier supplies or buyer purchases) nothing is recognised
What kind of element are goods not invoiced?
A liability
What kind of element is rent in advance?
An asset
