Elements Definitions

Question 1

What is the definition of an asset

Answer 1

A resource PRESENTLY controlled by an entity as a result of a PAST event from which, FUTURE ECONOMIC BENEFITS are expected to flow
REMEMBER PPF

Question 2

What is the definition of a liability

Answer 2

Liabilities are PRESENT obligations of the entity arising from a PAST event, the settlement of which is expected to result in an outflow of FUTURE ECONOMIC BENEFIT.
REMEMBER PPF

Question 3

What is the definition of owners equity

Answer 3

Equity is the residual interest in the assets of the entity after deducting all of its liabilities.
REMEMBER EQ = A-L

Question 4

What is the definition of expenses

Answer 4

Decreases in economic benefit during the accounting period in the form of outflows or depletions of assets or (incurrences in liabilities) that result in decreases to equity other than those relating to distributions.
REMEMBER DDDDND

Question 5

what is the definition of income

Answer 5

Increases in economic benefit during the accounting period in the form of inflows of assets (or decreases in liabilities) that result in increases to equity other than those relating to contributions
IIIINC