Which of the following elements in the financial statement is NOT defined by reference to other elements?

Question

Quizplus · Accepted Answer

Liabilities are defined independently in financial statements, not by reference to other elements. They represent obligations of the entity arising from past transactions or events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. In contrast, equity, expenses, and income are defined with reference to other elements. Equity is defined as the residual interest in the assets of the entity after deducting liabilities. Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

Which of the Following Elements in the Financial Statement Is