Statement of Financial Position

Question 1

This is a formal statement showing the three elements, namely assets, liabilities, and capital.

Answer 1

Statement of financial position

Question 2

This is a right that has the potential to produce economic benefits.

Answer 2

Economic resource

Question 3

This is a present economic resource controlled by the entity as a result of past events.

Answer 3

Asset

Question 4

What are the classifications present in a statement of financial position?

Answer 4

Current assets
Non-current assets
Current Liabilities
Non-current liabilities
Shareholders’ Capital

Question 5

Give items under the category of cash and cash equivalents.

Answer 5

Petty cash fund
Cash on hand
Cash in bank

Short term

Question 6

These are short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value.

Answer 6

Cash equivalents

Question 7

What maturity is considered short for a something to be considered a cash equivalent?

Answer 7

3 months or less from the date of acquisition

Question 8

What are the classifications under non-current assets?

Answer 8

Property, Plant and Equipment

Long-term investments

Intangible Assets

Other noncurrent assets

Question 9

What asset is deferred tax asset?

Answer 9

Noncurrent