Match the letter of each element with the appropriate definition.
-The residual interest in the assets of an entity after deducting its liabilities.
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

Equity refers to the residual interest in the assets of an entity after deducting its liabilities.

Answer: B
 Liabilities represent an entity's legally binding obligations or debts to third parties.

Answer: A
 Assets are resources that an entity controls and can use to generate economic benefits.

Answer: D
 Investments by owners are the amounts of cash or other assets contributed by the entity's owners or shareholders.

Answer: E
 Distribution to owners refers to the transfer of economic benefits to the entity's owners or shareholders.

Answer: F
 Comprehensive income is the change in equity during a period from transactions and other events and circumstances from non-owner sources.

Answer: G
 Revenues are inflows of economic resources resulting from the sale of goods or services.

Answer: H
 Expenses are outflows of economic resources resulting from the production of goods or services.

Answer: I
 Gains are increases in equity resulting from peripheral or incidental transactions of an entity.

Answer: J
 Losses are decreases in equity resulting from peripheral or incidental transactions of an entity.

Match the Letter of Each Element with the Appropriate Definition