What do you guys mean by this in your own word. :) thanks?

Question by john: What do you guys mean by this in your own word. 🙂 thanks?
1.) Equity is the “residual interest in the assets of the entity after decluting all of its liabilities”.

2.) Assets are defined as “resources controlled by the entity as a result of past or events from which future economic benefits are expected to flow to the entity”.

3.) Income is “increase in economic benefit during the accounting period in the form of inflow or increase in asset or decrease in liability that results in increase in equity, other than contribution or investment by owners”.

4.) Expense is “decrease in economic benefit during the accounting period in the form of an outflow or decrease in asset or increase in liability that results in decrease in equity, other than distribution or dividend paid to owners.

Best answer:

Answer by That Guy
I’ll assume this is for some sort of business studies exam? I could never remember the definitions for anything lol

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