Question

Identify the element or elements associated with these items.(a) Arises from peripheral or incidental transactions. select an element (b) Obligation to transfer resources arising from a past transaction. select an element (c) Increases ownership interest. select an element (d) Declares and pays cash dividends to owners. select an element (e) Increases in net assets in a period from nonowner sources. select an element (f) Items characterized by service potential or future economic benefit. select an element (g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners. select an element (h) Arises from income statement activities that constitute the entity’s ongoing major or central operations. select an element (i) Residual interest in the assets of the enterprise after deducting its liabilities.

Answer 1

Answer: .(a) Arises from peripheral or incidental transactions - corresponds to the definition of gains and losses.

(b) Obligation to transfer resources arising from a past transaction. - Corresponds to Liabilities.

(c) Increases ownership interest. - Investment by owner, Comprehensive Income.

(d) Declares and pays cash dividends to owners. - It is the Distributions to Owners.

(e) Increases in net assets in a period from nonowner sources. - Corresponds to Comprehensive Income.

(f) Items characterized by service potential or future economic benefit. - Is the definition of Assets.

(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners. - Comprehensive Income.

(h) Arises from income statement activities that constitute the entitys ongoing major or central operations. - Corresponds to the definition of Revenues and Expenses.

(i) Residual interest in the assets of the enterprise after deducting its liabilities. - Equity.