Elements of financial statements

• Assets

  Resources a business owns or controls that are expected to provide future benefits
• Liabilities

  Obligations owed by a business to others that are expected to be settled in the future
• Equity

  Claim by the owner(s) on the net assets of a business
• Income

  Amounts earned from the activities of a business
• Expenses

  Costs incurred to earn income in the same accounting period