Which of the following is not one of the seven elements defined by the GASB concept statements?

• A. Assets
• B. Liabilities
• C. Expenses
• D. Deferred outflows of resources

Answer: (C)

The key idea is knowing what the GASB Conceptual Framework lists as the seven elements. Those elements are assets, liabilities, inflows of resources, outflows of resources, deferred inflows of resources, deferred outflows of resources, and net position. Expenses isn’t one of these defined elements; it’s a measurement concept used to describe the cost of providing services, which affects net position through the balance of inflows and outflows but is not itself an element. The other options—assets and liabilities and the deferred inflows/outflows of resources—are all elements, while expenses is not.