Elements of financial statements

Question 1

Define assets

Answer 1

assests are present economic resources that are controlled by the entity as a result of passed events

Question 2

define current assests

Answer 2

assests that a released in the short term of the business cycle ,normally within one year

Question 3

define non current assets

Answer 3

assests that are held for a longer peroid of time ,typically over one year

Question 4

define liabilities

Answer 4

a liability is a present obligation of the entity to transfer an economic value as a result of past events

Question 5

define current term liabilities

Answer 5

liabilities that will be settled in the short term during the business cycle,normally within one year

Question 6

define non current liabilities

Answer 6

refer to liabilities that are settled in the long term,normally more than one year

Question 7

define equity

Answer 7

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

Question 8

define income

Answer 8

increases in assets or decreases in liabilities which result to increases in equity, either than those relating to contributions from holders of equity claims

Question 9

define expense

Answer 9

decreases in assests or increases in liabilities which result in decreases in equity ,either than those relationg to distributions to holders of equity claims .