Assets and liabilities are critical elements of financial statements. Assets are defined as a resource that will provide future economic benefits. Three examples include:

1. Land owned by Shoppers Drug Mart

2. The BlackBerry® trademark

3. Accounts receivable

Liabilities are defined as obligations that result from past transactions. Three examples include:

1. Accounts payable

2. Unearned revenue

3. Bank loan payable

Instructions

(a) Discuss how each of the three assets listed above will provide future economic benefits.

(b) Discuss how each of the three liabilities listed above arose