( 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 company's own shares .
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 company's own shares .
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