BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The elements directly related to the measurement of financial position in the balance sheet are assets, liabilities and equity. The elements directly related to the measurement of performance in the statement of profit and loss are income and expenses.

Detailed explanation-2: -The main elements of a statement of financial position are assets, liabilities and equity.

Detailed explanation-3: -There are several key elements on a statement of financial position. These include assets, liabilities, working capital (net current assets), and capital employed. In broad terms, assets are things that a business owns, whilst liabilities are things or money that a business owes.

Detailed explanation-4: -It is possible to summarize the three elements which, as a whole, generate the balance sheet for a company as the following: Assets. Liabilities. Shareholders’ Equity.

Detailed explanation-5: -In short, expenses appear directly in the income statement and indirectly in the balance sheet. It is useful to always read both the income statement and the balance sheet of a company, so that the full effect of an expense can be seen.