Topic 1: Conceptual framework Flashcards
1
Q
Primary user group
A
Existing and potential investors, lenders and creditors.
2
Q
The objective of financial information
A
Providing financial information that is useful to specific range of users. These users include customers, employees, suppliers, government and public.
3
Q
Define assets
A
An asset is a present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits.
4
Q
Define Liabilities
A
A liability is a present obligation of the entity to transfer an economic resource as a result of a previous event.
5
Q
Equity
A
Equity is the residual interest in the assets of the entity after deducting all its liabilities.
