Initially, before emphasising on the essay topic, I would like to briefly describe the five accounting elements. The five accounting elements include assets, liabilities, equity, income and expenses. According to Hogget, Edwards, Medlin (2006, p.486) first, an asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity, two liabilities are those present obligation of the entity arising from past …showed first 75 words of 791 total…

…showed last 75 words of 791 total…If a company has made a contract with him, it would pay David Beckham to play for couple of years, but on the other hand there is no guarantee that he will play every match to his best, he can get injured which can cause the company an expense because they have paid David on the basis of the contract. Similarly in this case, there is no guarantee that a company will earn certain amount.