TABLE 4.

1 FILL THIS IN

ELEMENTS DEFINITION OR DESCRIPTION

1. Elements are link to ?

2. Elements of financial statements that relate to financial position of an entity.
3. Elements of financial statements that relate to financial performance of an entity.
4. State the definition of asset, liability, equity, income, and expenses
5. What are the 3 aspects of asset’s definition?
6. What are the two forms of rights that have the potential to produce economic benefits?
7. Give examples of rights that correspond to an obligation of another party
8. Give examples of rights that do not correspond to an obligation of another party
9. Many rights are established by _____,______, and ______. Give example.
10. An entity may also obtained rights from other ways. What are those?
11. All entity’s rights are assets of an entity. T or F?
12. An entity’s right to obtain the economic benefits produced by such goods or services exists
_______ until that goods or services are _______.
13. To be an asset of the entity, the right must both have ______ and _______.
14. Give 3 example of entity’s rights that is not an asset of it.
15. An entity can have a right to obtain economic benefits from itself. T or F?
16. Give 2 examples of situation that the entity cannot have a right to obtain economic benefits
from itself.
17. In principle, each of an entity’s rights is a ________. But in accounting practices, related rights
are often treated as a ________ that is a ________.
18. Set of rights that arise from the legal ownership of a physical object.
19. In many case, set of rights arising from legal ownership of a physical object is accounted for as a
________.
20. Economic resource is the ________ and not the _______.
21. It is always certain that right exists. T or F?
22. An economic resource could produce economic benefits for an entity by entitling or enabling it
to do ?
23. Economic resource is the ______. The right to _______.
24. There is a close association between ______ and _______, but the two do not necessarily _____.
25. It links the economic resource to the entity.
26. An entity controls an economic resource if it has the ________.
27. An entity also has the present ability to __________.
28. Control of an economic resource usually arises from an ability to enforce _______. However, an
entity can still control an economic resource if it _________.
29. What factor indicates that the entity has control to a resource?
30. For a liability to exist, there are 3 criteria that must be satisfied. What are those?
31. It is necessary to know the identity of the party (or parties) to whom the obligation is owed. T or
F?
32. Many obligations are established by _______, ________, or ________ and are ________ by the
party (parties) to whom they are owed.
33. What is constructive obligation?
34. What is contingent liabilities?
35. An entity has an obligation if it has no _______.
36. A conclusion that it is appropriate to prepare the financial statements in a going concern basis
also implies what?
37. An obligation can be avoided only through ________ or ________.
38. The factors used to assess whether an entity has the practical ability to avoid transferring an
economic resource may depend on _________.
39. The obligation must have the potential to ?
40. Obligations to transfer an economic resource include?
41. Instead of fulfilling an obligation, an entity sometimes decides to ?
42. An entity has the obligation to transfer an economic resource until it has _____,______, or
_______ that obligation.
43. A present obligation exists as a result of past events only if _______ and _______.
44. The economic benefits obtain can be ________ and the action taken could include ________.
45. A present obligation cannot exists when a transfer of an economic resource cannot be enforce
until some point in the future. T or F? Justify your answer and give example.
46. An entity does not yet have present obligation to transfer an economic resource if it _________.
Give an example.
47. Before a contract is executory, the entity has a __________ to _________ for ________.
48. What is unit of account?
49. In some circumstances, it may be appropriate to select one unit of account for ______ and a
______ unit of account for _______. Give example.
50. For presentation and disclosure purposes, elements of financial statements may need to be
______ or _______ into ________.
51. Transferred components and retained components becomes _________.
52. A unit of account is selected to provide useful information, which implies that? 2 yon.
53. Cost also constrains the ________, aside financial reporting decisions.
54. In general, the costs associated with __________ increase as the _________ decreases. Hence
__________.
55. Sometimes, both rights and obligations arise from the ________. Give example.
56. If those rights and obligations from a contract are interdependent and cannot be separated,
they constitute a __________ and hence form a _________.
57. Treating a _________ differs from _________.
58. Possible units of account are? A-F
59. An executory contract is a ?
60. Executory contracts establishes?
61. It is an obligation imposed on entities that enter contracts to sell goods to customers.
62. The right and obligation arising from the executory contract are _______ and _______.
63. The entity has an asset if the terms of the exchange are ________.
64. The entity has a liability if the terms of exchange are currently ________.
65. State paragraph 4.58.
66. _______ of contracts create rights and obligations for an entity that is a party to that contract.
67. All terms in a contract – whether ______ or ______ - are considered unless they have no
_______.
68. Implicit terms could include, for example, obligations imposed by a _________ such as _______.
69. Terms that have no substance are _______.
70. How can you say if a term has no substance?
71. Terms that have no substance could include?
72. A _____ or _____ of ______ may achieve or be designed to achieve an overall _____________.
73. It may be necessary to treat rights and obligations arising from that group or series of contracts
as a ___________.
74. If a single contract creates two or more set of rights or obligations that could have been created
through two or more separate contracts, an entity may need to account for each set as if it
______ from ________ in order to ________ those rights and obligations.
75. Give example of equity claims.
76. What are the rights that the holders of different classes of equity claims can get from the entity?
77. Classes of equity claims.
78. Components of equity.
79. Matching of costs with income is __________ of conceptual framework.
80. What is recognition?
81. The amount at which an asset, a liability, or equity is recognized in the statement of financial
position is referred to as ________.
82. How recognition links the elements, statement of financial position, and statement of financial
performance.
83. Why statements are linked?
84. The recognition of income occurs at the same time as ?
85. The recognition of expense occurs at the same time as ?
86. Simultaneous recognition of income and related expense.
87. An asset or liability is recognized only if recognition of that asset or liability and of any resulting
income, expenses, or changes in equity provides users of financial statements with information
that is useful, in example with ?
88. Cost constrains _________, aside financial reporting decisions.
89. In some cases, the _________ outweigh its benefits.
90. It is not possible to define precisely when recognition of an asset or liability will provide useful
information to users of financial statements at a __________. What is useful to users depends
on the _______ and the _________ and ________.
91. _________ is required when deciding whether to recognize an item.
92. It is important when making decision about recognition to consider the __________.
93. Even if an item meeting the definition of asset or liability is not recognized, an entity may need
to provide information about the item in the _______.
94. Recognition of asset or liability and of any resulting income, expenses, or changes in equity may
not always provide relevant information, that may be the case if :
95. It may be a _________ of factors and not any ______ factor that determines whether
recognition provides relevant information.
96.