CertIFR_Chapter 1_Elements of FS

Asset is ...?

• A historical economic resource controlled by an entity as a result of a past event

• A present economic resource controlled by an entity as a result of a present event

• A present economic resource controlled by an entity as a result of a past event

• A present economic resource controlled by an entity as a result of a future event

Liability is ..... ?

• A future obligation of the entity to transfer an economic resource as a result of a present event

• A present obligation of the entity to transfer an economic resource as a result of a past event

• A present obligation of the entity to transfer an economic resource as a result of a future event

• A past obligation of the entity to transfer an economic resource as a result of a past event

The ....... interest in the net assets of an entity is equity.

Income is increases in assets or decreases in liabilities that result in an decrease in equity (excluding contributions from equity holders).

• True

• False

Expenses are ..... in assets or .... in liabilities that result in .... in equity (excluding distributions to equity holders).

• decreases - decreases - decreases

• decreases -decreases - increases

• decreases - increases - increases

• increases - increases - increases

• decreases - increases - decreases