What are the accounting elements?

Accounting standards for business enterprises divide accounting elements into assets, liabilities, owners' equity (shareholders' equity), income, expenses (costs) and profits.

1, assets

Content: Assets refer to resources formed by past transactions or events of an enterprise, which are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise. Assets can be divided into current assets and non-current assets.

2. Debt

Content: Liabilities refer to the current obligations of an enterprise due to past transactions or events, which are expected to lead to the outflow of economic benefits from the enterprise.

3. Owner's equity

Content: Owner's equity refers to the residual equity enjoyed by the owner after deducting liabilities from the assets of the enterprise.

4. Income

Content: Income refers to the total inflow of economic benefits formed by enterprises in their daily activities, which will lead to the increase of owners' equity and has nothing to do with owners' investment capital.

5. expenses

Content: Expense refers to the total outflow of economic benefits formed by enterprises in their daily activities, which will lead to the decrease of owners' equity and has nothing to do with the distribution of profits to owners. Expenses are the corresponding "costs" paid by enterprises to obtain income.

6. Profit

Content: Profit refers to the operating results of an enterprise in a certain accounting period. Including the balance of income MINUS expenses, directly record the profit and loss of the current period.

Extended data:

Accounting elements refer to the basic classification of accounting objects according to the economic characteristics of transactions or events, and also refer to the basic classification of accounting objects according to the economic nature. They are the specific objects and contents of accounting supervision, the main factors that constitute the specific contents of accounting objects, and the basic elements that constitute accounting statements.

Assets, liabilities and owners' equity are three accounting elements, which mainly reflect the financial situation of the enterprise and constitute the balance sheet elements;

Income, expenses and profits are three accounting elements that reflect the operating results of enterprises and constitute the elements of the income statement. Accounting elements are the concretization of accounting objects, the cornerstone of basic accounting theory research and the core of accounting standards construction.

References:

Baidu Encyclopedia-Accounting Elements