Income is defined as increases in assets or decreases in liabilities that result in decreases in equity, other than those relating to contributions from equity holders. 5 Information about financial performance is useful in predicting future performance and ability to generate future cash flows. 6 Cash flows arising from the purchase and sale of dealing or trading securities are classified as investing activities. Investing activities include cash flows from transactions involving operating assets. 8. Financing activities include the cash flows from transactions involving trade liabilities and equity of an entity. Expense is defined as decreases in assets or increases in liabilities that result in increases in equity, other than those relating to contributions from equity holders. 10. Cost is the amount of cash and cash equivalent paid and the fair value of the other consideration given to acquire an asset at the time of acquisition or construction. 11. Reporting period is either the period over which an asset is expected to be available for use by the entity, or the number of production or similar units expected to be obtained from the asset by the entity.

Income is defined as increases in assets or decreases in liabilities that result in decreases in equity, other than those relating to contributions from equity holders. 5 Information about financial performance is useful in predicting future performance and ability to generate future cash flows. 6 Cash flows arising from the purchase and sale of dealing or trading securities are classified as investing activities. Investing activities include cash flows from transactions involving operating assets. 8. Financing activities include the cash flows from transactions involving trade liabilities and equity of an entity. Expense is defined as decreases in assets or increases in liabilities that result in increases in equity, other than those relating to contributions from equity holders. 10. Cost is the amount of cash and cash equivalent paid and the fair value of the other consideration given to acquire an asset at the time of acquisition or construction. 11. Reporting period is either the period over which an asset is expected to be available for use by the entity, or the number of production or similar units expected to be obtained from the asset by the entity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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