Distinguish between elements of financial statements and accounts.
Items reported on the financial statements are organized into classes or categories called elements. The ten elements of financial statements are:
1. Assets
2. Liabilities
3. Equity (Stockholders' Equity)
4. Investments by Owners (Contributed Capital)
5. Revenue
6. Expenses
7. Distributions (Dividends)
8. Net Income
9. Gains
10. Losses
Accounts are specific items or subclassifications of the elements. Examples of accounts include cash, land and common stock.