Accounting Quiz

Front 1

Define an asset

Back 1

1. Resource controlled by an entity

2. Future inflow of economic benefits

3. Event giving rise to control has occurred

Front 2

Recognition criteria for an asset

Back 2

1. Future economic benefit associated with the item will flow to the entity

2. Cost/value can be measured reliably

Front 3

Definition of a Liability

Back 3

1. Present Obligation

2. Outflows of economic benefits

3. Event giving rise to obligation has occurred

Front 4

Liability Recognition Criteria

Back 4

1. Future economic benefit associated with item flows to entity

2. Cost/value can be measured reliably

Front 5

Definition of equity

Back 5

Residual interest in assets less liabilities, including:

- share capital

- retained earnings

- reserves

Front 6

Definition of Income

Back 6

1. Increase in economic benefit

2. Inflows/enhancements of assets or decrease of liabilities

3. increase of equity, other than contribution from equity participants

Front 7

Income Criteria

Back 7

1. Increase in future economic benefit has arisen

2. Increase can be measured reliably

Front 8

Expense Definition

Back 8

1. Consumption of economic benefits

2. Decrease in assets/increase in liabilities

3. Decrease in equity -- not ditribution to owners

Front 9

Expense criteria

Back 9

1. Decrease in future economic benefit has arisen

2. Decrease measured reliably