'Decreases in economic benefits in the form of outflows or depletions of assets or incurrences of liabilities that result in a decrease in equity,other than those relating to distributions to equity participants' is the definition of:
A) liabilities.
B) assets.
C) expenses.
D) equity.

Question

Quizplus · Accepted Answer

The definition describes expenses, which are decreases in economic benefits that result in a decrease in equity, other than those related to distributions to equity participants. Liabilities are obligations to transfer economic benefits that will result in an outflow of resources, while assets are resources controlled by an entity as a result of past events that are expected to generate future economic benefits. Equity represents the residual interest in the assets of an entity after deducting liabilities.

'Decreases in Economic Benefits in the Form of Outflows or Depletions