1. Arises from peripheral or incidental transactions. Gains or Losses 2. Obliges a transfer of resources because of a present, enforceable obligation. Liabilities 3. Increases in the ownership interest through issuance of shares. 4. Cash dividends to owners (declared and paid). 5. An expenditure that has future economic benefit. 6. Decreases in assets during the period for the payment of income taxes. 7. Arises from income-generating activities that are the entity's ongoing major or central operations. 8. Is the residual interest in the enterprise's assets after deducting its liabilities. 9. Increases assets during the period through the sale of inventory. 10. Decreases assets during the period by purchasing the company's own shares. Assets Equity Expenses Gains Gains or Losses Liabilities Losses Revenues Revenues or Expenses