Financial Statement

It is a resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.

• asset

• liability

• equity

• financial statements

Refer to the quantitative information reported in the statement of financial position and income statement.

• financial statement

• asset

• liability

• equity

All of the following are elements of financial statement. EXCEPT.

• liability

• asset

• balance sheet

• equity

It is the present obligation arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

• asset

• balance sheet

• income statement

• liability

Example of an asset includes:

• cash

• accounts receivable

• accounts payable

• inventories

• equipment

Example of a liability includes:

• accounts payable

• accounts receivable

• notes payable

• bonds payable

It is an increase in economic benefit during the accounting period in the form of inflow or increase in asset or decrease in liability that results in increase in equity, other than contribution from equity participants.

• expense

• income

• sales

• gain

It is a decrease in economic benefit during the accounting period in the form of an outflow or decrease in asset or increase in liability that results in decrease in equity, other than distribution to equity participants.

• expense

• gain

• income

• asset

The elements directly related to the measurement of financial performance are:

• income and expense

• asset, liability, equity

• asset and liability

• income, expense and equity

It is the residual interest in the assets of the entity after deducting all of the liabilities.

• income

• equity

• liability

• asset