ConceptualFrameworkforFinancialAccounting幻灯片.pptVIP

Assets Liabilities Equity Investment by owners Distribution to owners Comprehensive income Revenue Expenses Gains Losses Second Level: Basic Elements Exercise 2-5: Identify the element or elements associated with items below. (a) Arises from peripheral or incidental transactions. (b) Obligation to transfer resources arising from a past transaction. (c) Increases ownership interest. (d) Declares and pays cash dividends to owners. (e) Increases in net assets in a period from nonowner sources. (a) Elements (b) (c) (d) (c) (a) (e) LO 5 (g) Second Level: Basic Elements Exercise 2-5: Identify the element or elements associated with items below. (f) Items characterized by future economic benefit. (g) Equals increase in net assets during the year, after adding distributions to owners and subtracting investments by owners. (h) Arises from income statement activities that constitute the entity’s ongoing major or central operations. LO 5 Elements (f) (h) (h) Assets Liabilities Equity Investment by owners Distribution to owners Comprehensive income Revenue Expenses Gains Losses (i) Residual interest in the net assets of the enterprise. (j) Increases assets through sale of product. (k) Decreases assets by purchasing the company’s own stock. (l) Changes in equity during the period, except those from investments by owners and distributions to owners. Second Level: Basic Elements Exercise 2-5: Identify the element or elements associated with items below. LO 5 (i) (j) (k) (l) Assets Liabilities Equity Investment by owners Distribution to owners Comprehensive income Revenue Expenses Gains Losses Elements Review: Second Level: Basic Elements According to the FASB conceptual framework, an entity’s revenue may result from A decrease in an asset from primary operations. An increase in an asset from incidental transactions. An increase in a liability from incidental transactions. A decrease in a liability from primary operations. LO 5 Define the basic elements of finan