Exercise 1-6 Financial statement elements [L01-7] For each of the items listed below, identify the appropriate financial statement element. Item Element 1. Obligation to transfer cash or other resources as a result of a past transaction. 2. Dividends paid by a corporation to its shareholders. Asset 3. Inflow of an asset from providing a good or service. Assets, liabilities and equity 4. The financial position of a company. Comprehensive income 5. Increase in equity during a period from nonowner transactions. Distribution to owners 6. Increase in equity from peripheral or incidental transaction. Equity 7. Sale of an asset used in the operations of a business for less than the asset's book value. Expense 8. The owners' residual interest in the assets of a company. Gain 9. An item owned by the company representing probable future benefits. Investment by owner 10. Revenues plus gains less expenses and losses Liability 11. An owner's contribution of cash to a corporation in exchange for ownership shares of stock. Loss Net income 12. Outflow of an asset related to the production of revenue. Revenue