Please study the Purposes$/$Principles handout I prepared for this course. One of the things that it shows is the eleven $(11)$ elements of the financial statements. Based on this handout, answer the following question.

What is the third $(3$rd$)$ element of the financial statements?

Purpose$-$Principles$-$Assumptions of Financial Reporting for Intermediate II Handout

Question $11$ options:

$1)$

Equity

$2)$

Current Liabilities

$3)$

Record

$4)$

Liabilities