Here are the basic elements of financial statements that we learned about in earlier chapters: 

1. Assets 

2. Liabilities 

3. Equity 

4. Revenues 

5. Expenses 

Each statement that follows is an important aspect of an element’s definition. Match the elements with the definitions. 

Note: More than one number can be placed in a blank. Each number may be used more than once or not at all. 

a. ______ Increases in assets or decreases in liabilities resulting from the main profit-generating activities of the business 

b. ______ Existing debts and obligations from past transactions 

c. ______ Resources owned by a business 

d. ______ Goods or services used in the process of earning revenue 

e. ______ A residual claim on total assets after deducting liabilities 

f. ______ The capacity to provide future benefits to the business