E1.7 (LO 2) (Elements of Financial Statements) Ten interrelated elements that are most directly related to measuring the performance and financial status of an enterprise are provided below.

E1.7 (LO 2) (Elements of Financial Statements) Ten interrelated elements that are most directly related to measuring the performance and financial status of an enterprise are provided below. Instructions Identify the element or elements associated with the 12 items below.

Decreases in equity except those that result from expenses or distributions to owners.

Losses

Obligation to transfer economic benefits.

Liabilities

Increases ownership interest

Investment by owners

Declares and pays cash dividends to owners.

Distribution to owners

Increases in net assets in a period from nonowner sources

Comprehensive income

Items characterized by service potential or future economic benefit.

Assets

Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners.

Comprehensive income

Arises from income statement activities that constitute the entity’s ongoing major or central operations.

Revenues, Expenses

Residual interest in the assets of the enterprise after deducting its liabilities.

Equity/ net assets

Increases assets during a period through the sale of product

Revenues

Includes all changes in equity during the period, except those resulting from investments by owners and distributions to owners.

Comprehensive Income