Accounting Topics Introduction

Accounting Topics Introduction

Equity is the residual interest in the assets of the entity after deducting all its liabilities.

Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

Expenses are decreases in assets, or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.