3: Measuring and reporting financial position Flashcards
1
Q
What is the purpose of the statement of financial position?
A
to list the assets of the business and the claims against the assets at a particular point of time
2
Q
Identify the asset. A Bank loan taken from ABC bank B Plant and equipment C Owners capital D Accrued or outstanding expenses
A
BPlant and equipment
3
Q
Which of these is not an asset? A Accounts payable B Loan given to Marc C Accounts receivable D Both A and B
A
A Accounts payable
4
Q
Identify the intangible asset A Inventory B Loan C Accounts payable D Goodwill
A
D Goodwill
5
Q
Which of the following is a liability? A Dividend paid B Accounts payable C Prepaid insurance D Cash at bank
A
B Accounts payable
6
Q
Which of these does not belong with the others? A Bank overdraft B Prepaid wages C Accounts payable D Mortgage loan
A
B Prepaid wages
7
Q
What is another name for accounts receivable? A debtors B receivables C Accounts payable D Both A and B
A
D Both A and B [debtors and receivables]
8
Q
If liabilities are $56,000 and equity is $68,900, assets are:
A $124,900
B $12,900
C $113,900
A
A $124,900
9
Q
What is the effect on the statement of financial position of a business buying supplies for cash?
A
increase asset supplies; decrease asset cash
10
Q
If liabilities are $55,000 and assets are $123,600, equity is: A $178,400 B $68,600 C $178,600 D $68,400
A
B $68,600
