The International Accounting Standards Board (IASB) defines one of the 5 elements as follows: "the residual interest in the assets of the entity after deducting all its liabilities" Which element matches this description?
A) Retained earnings.
B) Income.
C) Equity.
D) All of the choices match this definition.

Question

Quizplus · Accepted Answer

The IASB defines equity as the residual interest in the assets of the entity after deducting all its liabilities. Therefore, only choice C matches this definition.

The International Accounting Standards Board (IASB) Defines One of the 5