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    RUPIA 1997 maintained many of the basic rules and principles of RUPIA 1962, though some significant changes were incorporated in the newer uniform law.

    The accounting equation tells us that ASI has assets of ,000 and the source of those assets was the stockholders.Cash is vital element of any company needed to acquire supply resources, equipment and other assets used in generating the products and services.Marketable securities also come under near cash, serve as back pool of liquidity which provides quick cash when needed.However, net assets of an entity may also decrease as a result of payment of dividends to shareholders or drawings by owners of a business, both of which are distributions of profits rather than expense.This is the significance of the latter part of the definition of expense.

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