Accounting › Section A · Accounting and the financial statements › Topic A.5
Assets, liabilities, equity, revenues, and expenses
Financial statements are built from a small set of building blocks called elements. Knowing exactly what counts as an asset, a liability, equity, a revenue or an expense, and how each is classified, is the vocabulary you will use in every topic that follows.
In this topic
- The elements of the statements
- Assets
- Current and noncurrent assets
- Tangible and intangible assets
- Liabilities
- Equity and the legal structure
- Revenues and expenses
- Gains and losses
- Worked example: classifying a balance sheet
- Worked example: not every transaction changes equity
- Common mistakes to avoid
- Key takeaways
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