Financial statement elements

From Wikicpa

Basic Elements of Financial Statements

• Assets

Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

• Liabilities

Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

• Equity

Residual interest in the assets of an entity that remains after deducting its liabilities.

• Investments by owners

Increases in net assets of a particular enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interest or equity in the enterprise. Assets are most commonly received as investments by owners.

• Distriubtions to owners

Decreases in net assets of a particular enterprise resulting from transfering assets, providing services, or incurring liabilities by the enterprise to owners.

• Revenues

Inflows of assets of an entity or settlement of liabilities during a period from delivering goods or services that are a part of the enterprises normal operations.