Elements of Final Accounts

Question	Answer
Asset	A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Liability	A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits
Equity	The residual interest in the assets of the entity after deducting all its liabilities
Income	Increases in economic benefits during the accounting period in the form of inflows or enhancement of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
Expenses	Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or increases in liabilities that result in decreases in equity, other than those that represent distributions to equity participants

Resource summary

	Created by Liz Barraclough about 11 years ago