BASIC ELEMENTS OF FINANCIAL ACCOUNTING/STATEMENTS

• ASSETS,      which represent probable future economic benefits obtained or
  controlled by the entity as a result of past transactions or events.
• LIABILITIES,    which represent probable future sacrifices of future economic
  benefits arising from the present obligations to transfer assets or provide
  services to other entities in the future as a result of past transaction or events.
  
• EQUITY,    which represents the residual interest in the assets of an entity
  after deducting the liabilities.
  
• INVESTMENTS BY OWNERS,    which are increases in net assets of an
  enterprise resulting from transfers to it from other entities to obtain or increase
  ownership interests in the enterprise.
  
• DISTRIBUTIONS TO OWNERS,    which represent decreases in net assets
  of an enterprise resulting from transferring assets, rendering services, or
  incurring liabilities by the enterprise to owners.
  
• REVENUES,    which are the inflows or enhancements of assets or settle-
  ment of liabilities during a period resulting from the delivery of goods,
  rendering of services, or other activities that constitute the enterprise's
  ongoing major or central operations.
  
• EXPENSES,    which are outflows or other using up of assets or incur-
  rences of liabilities during a period from delivering or producing goods,
  rendring services, or carry out other activities that constitute the entity's
  ongoing major or central operations.
  
• GAINS,    which are increases in net assets resulting from transactions
  and events during a period other than those that result from revenues
  or invesstments by owners.
  
• LOSSES,    which are decreases in net assets resulting from transactions
  and events during a period other than those that result from expenses or
  distributions to owners.

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Copyright 1998
Steven L. Jager, CPA, An Accountancy Corporation