LiabilitiesLiabilitiesDefinitionClassificationAn outflow of*Currentresource indicatingliabilitieseconomic benefits* Non-currentwill result from theliabilitiessettlement of apresent obligation
2025/12/3 6 Liabilities Definition Classification Liabilities An outflow of resource indicating economic benefits will result from the settlement of a present obligation. ＊Current liabilities ＊ Non-current liabilities
Franklin CorporationBalance sheetDecember31.2009Current liabilities370,000Accounts payable20,000Salaries payable5,500Short-term loan395,500Total current liabilitiesNon-current liabilities595,000Long-term loan payable45,000Deferred tax liability640,000Total Non-current assets1,035,500Total liabilitiesOwner's equity1,500,000Paid-in capital500,000Share premium795,000Retained earnings2,795,000Total owner's equity3,830,500Total liabilities and owner's equity72025/12/3
2025/12/3 7 Franklin Corporation Balance sheet December 31, 2009 Current liabilities Accounts payable 370,000 Salaries payable 20,000 Short-term loan 5,500 Total current liabilities 395,500 Non-current liabilities Long-term loan payable 595,000 Deferred tax liability 45,000 Total Non-current assets 640,000 Total liabilities 1,035,500 Owner’s equity Paid-in capital 1,500,000 Share premium 500,000 Retained earnings 795,000 Total owner’s equity 2,795,000 Total liabilities and owner’s equity 3,830,500
Owner's equityOwner's equityDefinitionClassificationIt refers to the*Paid-inresources invested incapital/sharethe business by thecapitalowner oraccumulated* Capital surplusduring the course of* Retainedoperation.earnings
2025/12/3 8 Owner’s equity Definition Classification Owner’s equity It refers to the resources invested in the business by the owner or accumulated during the course of operation. ＊Paid-in capital/share capital ＊Capital surplus ＊ Retained earnings
RevenuesRevenuesDefinitionClassificationRevenues arecash* Sales revenueinflows or otherenhancementsofassets*Otherincomeof an entity or settlemenof its liabilities oracombination ofbothinthe normal operation ofbusiness activities
2025/12/3 9 Definition Classification Revenues ＊Sales revenue ＊Other income Revenues Revenues are cash inflows or other enhancements of assets of an entity or settlement of its liabilities or a combination of both in the normal operation of business activities