This document provides a summary of revenues and expenses. It explains that revenues are recorded when there is an inflow of economic benefits that increase assets or owner's equity. Expenses are recorded when there is an outflow of economic benefits that decrease assets or increase liabilities and decrease owner's equity. It also provides criteria for classifying transactions as revenues or expenses based on whether there is an inflow or outflow of economic benefits and the impact on the accounting equation.

1. 1.19
SUMMARY OF REVENUES
AND EXPENSES

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YouTube Channel for VCE Accounting

3. © Michael Allison. Author’s permission required for external use.
 Summary of Revenues and Expenses…
1.19 SUMMARY OF REVENUES
AND EXPENSES
Inflow of
economic
benefits
 Assets  Owner’s EquityRevenue Earned
Outflow of
economic
benefits
 Assets
or
 Liabilities
 Owner’s EquityExpense Incurred
Criteria #1 Criteria #2 Criteria #3
Inflow of
economic
benefits
 Assets
or
 Liabilities
 Owner’s Equity
Outflow of
economic
benefits
 Assets
or
 Liabilities
 Owner’s Equity

4. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
Ex1.1 X
Ex1.2 X