Elements of Financial Statement- - Management Duniya

Elements of Financial Statement-

Asset: An asset is a resource controlled by the enterprise as a result of past events & from which future economic benefits for expected to flow to the enterprise. –IASC

Liability: A liability is present arising from past events. The settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits.

Equity: Equity is the residual in the asset of the enterprise after deducting all its liabilities.

Income: Income is an increase in the economic benefits during the accounting period in the form of inflows or enhancements of assets or decrease in those liabilities that result in an increase in equity.

Expense: Expenses are a decrease in the economic benefits during the accounting period  in the form of outflows or depletion of assets or incurrance of those liabilities that result in a decrease of those liabilities in equity.(Excluding distributions to equity participant).

Source: A/c Books & Notes

Tags: accountant, accounting, accounts, Assets, Capital, Credit, creditor, debit, debtor, Elements, Expenditure, finance, income, liabilities, Management, Profit & Loss a/c, Profit and Loss, revenue, tax
By: Management Duniya