FAC 1602- Correct answers 2024
What is an asset - Correct Answer-An Asset is a resource controlled by the entity as a result of
past events and from which future economic benefits are expected to flow to the entity.
What is a liability - Correct Answer-A liability is a present obligation arising from past events,
the settlement of which is expected to result in an outflow of economic resources.
What is equity - Correct Answer-Equity is the residual interest in the assets of the entity after
deducting all the liabilities
What is income - Correct Answer-Income is increases in assets, or decreases in liabilities, that
results in increases in equity, other than those relating to contributions from holders of equity
claims
What is expenses - Correct Answer-Expenses are decreases in assets, or increases in liabilities,
that result in decreases in equity, other than those relating to contributions from holders of
equity claims
What is an asset - Correct Answer-An Asset is a resource controlled by the entity as a result of
past events and from which future economic benefits are expected to flow to the entity.
What is a liability - Correct Answer-A liability is a present obligation arising from past events,
the settlement of which is expected to result in an outflow of economic resources.
What is equity - Correct Answer-Equity is the residual interest in the assets of the entity after
deducting all the liabilities
What is income - Correct Answer-Income is increases in assets, or decreases in liabilities, that
results in increases in equity, other than those relating to contributions from holders of equity
claims
What is expenses - Correct Answer-Expenses are decreases in assets, or increases in liabilities,
that result in decreases in equity, other than those relating to contributions from holders of
equity claims
