Match the letter of each element with the appropriate definition.
-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.
A)Assets
B)Liabilities
C)Equity
D)Investments by owners
E)Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Question

Quizplus · Accepted Answer

The definition matches the concept of liabilities, which represent future sacrifices of economic benefits due to past transactions or events.

Other options:
A) Assets: Economic resources controlled by an entity as a result of past events and from which future economic benefits are expected to flow. 
C) Equity: The residual interest in the assets of an entity after deducting liabilities. 
D) Investments by owners: Increases in economic resources resulting from transfers of resources by the owners. 
E) Distribution to owners: Decreases in economic resources resulting from transfers to the owners. 
F) Comprehensive income: Change in equity during a period resulting from transactions, events, and other circumstances from non-owner sources. 
G) Revenues: Inflows of economic resources resulting from the entity's ordinary activities. 
H) Expenses: Outflows of economic resources resulting from the entity's ordinary activities. 
I) Gains: Increases in equity resulting from peripheral or incidental transactions of an entity. 
J) Losses: Decreases in equity resulting from peripheral or incidental transactions of an entity.

Match the Letter of Each Element with the Appropriate Definition