Answer
a. Gains. Incidental transactions contribute to gains that are characterized by an addition to net assets.
b. Liabilities. Past events could necessitate the transfer of assets by an entity.
c. Investment by owners. When owners make investments in an entity, their ownership interest goes up as well.
d. Distribution to owners. Owners obtain assets or services as a payment for their investment.
e. Gains. Gains gotten from incidental transactions conducted by non-owners result in an upsurge of net assets.
f. Assets: Assets have the potency of yielding economic benefits in the times ahead.
g. Comprehensive income. The sum changes in an entity's net assets that are accredited to non-owner sources.
h. Revenues. Entities accumulate revenues from the activities that make up their pivotal operations.
i. Equity. Once liabilities are deducted from assets, the residual interest that remains makes up equity.
j. Investment by owners. Undertakings that increase owners' ownership, such as procurement of assets to grow their equity or the satisfaction of certain liabilities, which counts as equity.
k. Distribution to owners. These result in a lessening in the equity controlled by the owners.
l. Comprehensive income. This is associated with equity changes that do not arise directly from owners' investments or distributions bestowed to them.
Work Step by Step
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