Match the letter of each element with the appropriate definition.
-Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
A)Assets
B)Liabilities
C)Equity
D)Investments by owners
E)Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Question

Quizplus · Accepted Answer

Probable future economic benefits are defined as assets.

Answer: B
 Probable future obligations arising from past transactions or events are defined as liabilities.

Answer: C
 Residual interest in the assets of the entity after deducting liabilities is defined as equity.

Answer: D
 Increases in equity resulting from transfers of resources to a company from its owners are defined as investments by owners.

Answer: E
 Distributions of assets to the owners are defined as distribution to owners.

Answer: F
 Changes in equity during a period resulting from transactions and other events, other than those changes resulting from investments by owners and distributions to owners, are defined as comprehensive income.

Answer: G
 Inflows or enhancements of assets or settlements of liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations are defined as revenues.

Answer: H
 Outflows or using up of assets or incurrence of liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations are defined as expenses.

Answer: I
 Increases in equity from peripheral or incidental transactions of an entity are defined as gains.

Answer: J
 Decreases in equity from peripheral or incidental transactions of an entity are defined as losses.

Match the Letter of Each Element with the Appropriate Definition