Balance sheet
- Report firm’s financial position at a point in time
- Consist of 3 elements
- Assets (4): Resource controlled as results of past transactions that is expected to provide future economic benefits
- Liability(5): Obligation as a result of past events that are expected to require outflows of economic resources
- Equity(6): The owner’s residual interest in the asset after deducting the liabilities
- Recognized when future benefits is probable and items value can be measured reliably