E2-5 FULLY ANSWERED GRADE A QUESTION
AND ANSWERS
Ten interrelated elements that are mostly directly related to measuring the performance
and financial status of an enterprise are provided below
Assets Liabilities
Equity Revenues
Expenses Gains
Losses
Investment by owners
Distributions to owners
Comprehensive Income
Identify the element or elements associated with the 12 items below - (correct answer)
a. Arises from peripheral or incidental transactions - (correct answer)Gaines, losses
b. Obligation to transfer resources arising from a past transaction - (correct
answer)Liabilities
c. Increases ownership interest - (correct answer)Investments by owners
comprehensive income (also possible would be revenues and gains)
d. Declares and pays cash dividends to owners - (correct answer)Distribution to owners
e. increases in net assets in a period from non-owner resources - (correct
answer)Comprehensive income (also possible would be revenue and gains)
AND ANSWERS
Ten interrelated elements that are mostly directly related to measuring the performance
and financial status of an enterprise are provided below
Assets Liabilities
Equity Revenues
Expenses Gains
Losses
Investment by owners
Distributions to owners
Comprehensive Income
Identify the element or elements associated with the 12 items below - (correct answer)
a. Arises from peripheral or incidental transactions - (correct answer)Gaines, losses
b. Obligation to transfer resources arising from a past transaction - (correct
answer)Liabilities
c. Increases ownership interest - (correct answer)Investments by owners
comprehensive income (also possible would be revenues and gains)
d. Declares and pays cash dividends to owners - (correct answer)Distribution to owners
e. increases in net assets in a period from non-owner resources - (correct
answer)Comprehensive income (also possible would be revenue and gains)
