Elements of Financial Statements The conceptual framework defines the elements of financial statements a through /below. Important aspects of each element are listed in 1 through 11 below. Match the aspects with the element(s) that applies to each aspect. Some aspects can have more than one related element. Financial Statement Elements a. Revenues f. Assets b. Losses g. Equity c. Gains h. Investments by owners d. Expenses / Distributions to owners e. Liabilities Important Aspect of the Element Definition 1. Residual Interest in assets after deducting liabilities. 2. Decrease ownership claims. 3. Result from the entity's ongoing major or central operations. 4. Probable future economic benefits obtained by an entity. 5. Using up of assets or incurrence of liabilities. 6. Enhancements of assets or settlements of liabilities. 7. From peripheral or incidental transaction of the entity. 8. Probable future sacrifices arising from present obligations. 9. Increases in equity from peripheral or incidental activities. 10. Increases in net assets for an ownership interest. = a. Revenues e. Liabilities = b. Losses g. Equity b. Losses and c. Gains f. Assets = a. Revenues and d. Expi * e. Liabilities I. Distributions to owne h. Investment by owner 11. Decreases in net assets by transferring assets to entity owners. c. Gains