Problem-

Assets and liabilities are two of the primary elements that make up the ‘accounting equation'. They both come in a variety of classificatory forms and descriptions. Over the years, and in their various classificatory forms and descriptions, assets and liabilities have been associated with a variety of different definitions, recognition criteria and measurement bases. You are required to: Describe, discuss and analyze this statement; and, Use this description, discussion and analysis to reach your own opinions - which you must clearly state - concerning the most appropriate (respectively for assets and liabilities):

• Definitions,
• Recognition criteria; and
• Measurement bases.

Additional information-

This problem belongs to Basic Accounting and it is a report on liabilities and assets and in a balance sheet and the various classificatory descriptions and forms. In other words, it is about liabilities and assets and the various constituents that make up the assets and liabilities in the balance sheet. Various heads that fall under each of the categories have been explained in the solution.

Word limit- 3000.