E2-3 (Elements of Financial Statements) Ten interrelated elements that are most directly related tomeasuring the performance and financial status of an enterprise are provided below.AssetsDistributions to ownersExpensesLiabilitiesComprehensive incomeGainsEquityInvestments by ownersRevenuesLossesqxd 10/24/029:18 AM Page 52 mac76 mac76:385_reb:25/34$2 • Chapter 2 Conceptual Framework Underlying Financial AccountingInstructionsIdentify the element or elements associated with the 12 items below.(a) Arises from peripheral or incidental transactions.(b) Obligation to transfer resources arising from a past transaction.(c) Increases ownership interest.(d) Declares and pays cash dividends to owners.(e) Increases in net assets in a period from nonowner sources.(f) Items characterized by service potential or future economic benefit.(g) Equals increase in assets less liabilities during the year, after adding distributions to owners andsubtracting investments by owners.(h) Arises from income statement activities that constitute the entity's ongoing major or centraloperations.(i) Residual interest in the assets of the enterprise after deducting its liabilities.(j) Increases assets during a period through sale of product.(k) Decreases assets during the period by purchasing the company's own stock.(1) Includes all changes in equity during the period, except those resulting from investments by own-ers and distributions to owners.

Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

measuring the performance and financial status of an enterprise are provided below. Assets Distributions to owners Expenses Liabilities Comprehensive income Gains Equity Investments by owners Revenues Losses

measuring the performance and financial status of an enterprise are provided below. Assets Distributions to owners Expenses Liabilities Comprehensive income Gains Equity Investments by owners Revenues Losses

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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Question

E2-3 (Elements of Financial Statements) Ten interrelated elements that are most directly related to
measuring the performance and financial status of an enterprise are provided below.
Assets
Distributions to owners
Expenses
Liabilities
Comprehensive income
Gains
Equity
Investments by owners
Revenues
Losses
qxd 10/24/02
9:18 AM Page 52 mac76 mac76:385_reb:
25/34
$2 • Chapter 2 Conceptual Framework Underlying Financial Accounting
Instructions
Identify the element or elements associated with the 12 items below.
(a) Arises from peripheral or incidental transactions.
(b) Obligation to transfer resources arising from a past transaction.
(c) Increases ownership interest.
(d) Declares and pays cash dividends to owners.
(e) Increases in net assets in a period from nonowner sources.
(f) Items characterized by service potential or future economic benefit.
(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and
subtracting investments by owners.
(h) Arises from income statement activities that constitute the entity's ongoing major or central
operations.
(i) Residual interest in the assets of the enterprise after deducting its liabilities.
(j) Increases assets during a period through sale of product.
(k) Decreases assets during the period by purchasing the company's own stock.
(1) Includes all changes in equity during the period, except those resulting from investments by own-
ers and distributions to owners.

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