AMA201_Exercise_2_3 - g Equals increase in net assets...

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Jesica Islas Intermediate Accounting 1 January 22, 2007 Professor A. Wu Chapter 2 Exercises on Chapter 2 Exercise 2-3 (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 Revenues Losses Investments by owners Instructions: Identify the element or elements associated with the 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 non-owner sources. f. Items characterized by future economic benefit.
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Unformatted text preview: g. Equals increase in net assets during the year, after adding distributions to owners and subtracting investments by owners. h. Arises from income statements activities that constitute the entity’s ongoing major or central operations. i. Residual interest in the net assets of the enterprise. j. Increases asset through sale of products k. Decreases assets by purchasing the company’s own stock. l. Changes in equity during the period, except those from investments by owners and distributions to owners. Elements: (f) Assets (b) Liabilities (i) Equity (c) Investment by owners (k)(d) Distribution to owners (l)(g)(e)(c) Comprehensive income (j)(h) Revenue (h) Expenses (a) Gain (a) Losses...
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