Elements of financial statements Flashcards
Define assets
assests are present economic resources that are controlled by the entity as a result of passed events
define current assests
assests that a released in the short term of the business cycle ,normally within one year
define non current assets
assests that are held for a longer peroid of time ,typically over one year
define liabilities
a liability is a present obligation of the entity to transfer an economic value as a result of past events
define current term liabilities
liabilities that will be settled in the short term during the business cycle,normally within one year
define non current liabilities
refer to liabilities that are settled in the long term,normally more than one year
define equity
equity is the residual interest in the assets of the entity after deducting all its liabilities
define income
increases in assets or decreases in liabilities which result to increases in equity, either than those relating to contributions from holders of equity claims
define expense
decreases in assests or increases in liabilities which result in decreases in equity ,either than those relationg to distributions to holders of equity claims .