Midterm Quiz 2 - Part 2

These are the resources you control that have resulted from past events and can provide you with future economic benefits.

It means you have the exclusive right to enjoy those benefits or you can prevent others from enjoying those benefits.

It is the control over a resource have resulted from a past event or transaction.

These are your present obligations that have resulted from past events and can require you to give up resources when settling them.

It means that right now, you have a responsibility to pay someone because of an obligating event that has already transpired.

It is simply assets minus liabilities.

These are increases in economic benefits during the period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to investments by the business owners.

These are decreases in economic benefits during the period in the form of outflows or depletions of assets or increases of liabilities that result in decreases in equity, other than those relating to distributions to the business owners.

In this equation, all the financial statement elements are shown in one equation.

It is an event that creates either a legal obligation or constructive obligation.