'Resources controlled by the entity as a result of past transactions or events and from which future economic benefits are expected to flow to the entity' is the definition of:
A) expenses.
B) assets.
C) liabilities.
D) equity.

Question

Quizplus · Accepted Answer

The definition given is that of assets. Liabilities are defined as obligations that arise from past transactions/events and involve the outflow of economic resources, while equity is the residual interest in the assets of an entity after deducting liabilities. Expenses are outflows of economic resources and do not necessarily result in control of assets.

'Resources Controlled by the Entity as a Result of Past