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- E2.5 ( L02 ) ( Elements of Financial Statements ) Five interrelated elements that are most directly related to measuring the performance and financial status of an enterprise are provided below . Assets Income Liabilities Expenses Equity Instructions: Identify the element or elements associated with the following nine items . a . Obligation to transfer resources arising from a past transaction . b . Increases ownership interest by issuance of shares . c . Declares and pays cash dividends to owners . d . Increases in net assets in a period from non - owner sources . e . Items characterized by service potential or future economic benefit . f . Equals increase in assets less liabilities during the year , after adding distributions to owners and subtracting investments by owners . g . Residual interest in the assets of the enterprise after deducting its liabilities . h . Increases assets during a period through sale of product . i . Decreases assets during the period by purchasing the…17 the ratio that measures a company's success in using its assets ro earn income dor rh persons who finance the business is the what?Explain tthese positive accounting theories 1- Stakeholder Theory 2- Institutional Theory
- 26. How the cost of reporting financial information should be justified? a. By the number of transactions b. By the benefits of reporting that information c. By the amount of capital d. By the size of the business organization1. What would increase the liabilities of a business entity? Please provide specific examples. 2. What would decrease the liabilities of business entity? Please provide specific examples. 3. What is the relationship of assets, liabilities, and owner's capital in a business entity?Question 3: use the information below to complete the classified income statement or company corporation as of 12/31/2021 *second image is what it’s suppose to look like when filling everything in
- 4. Using Full PFRS instead of SME’s PFRS in a business supposed to used SME’s PFRS was there a material effect on the presentations of financial position and financial operation? How?The following relates to the different income components: Employment or loss Business income or loss Property income or loss Capital gain or loss Use the above details to answer questions 11 and 12. What are the most possible sources of income to a business, corporation or trust? Question 8 options: a) i, ii and iii b) ii, iii and iv c) i and iv d) All of the aboveStatement 1:Liability is a present obligation of an enterprise.Statement 2: Liability is payable to a party.Statement 3:A liability arises from past transactions or eventsStatement 4: The settlement of a liability will result to inflow of enterprise resources embodying economic benefits Only two statements are correct. None of the statements is correct. Only one statement is wrong. All statements are correct.
- Q3 Gearing adjustment is not required when: a. The entire capital of the enterprise is contributed by financiers b. Borrowers alone are allowed to contribute in capital c. The capital is not at all contributed d. The entire capital of the enterprise is contributed by owners alone2. Problem 2: The statement of comprehensive Income of Alexis Company is reproduced below.True or False Question 1. The Comparabilty concept in accounting means different companies use similar accounting principles.