20A2 - Intermediate Acc. - Statement of Financial Position

Which of the following is not a limitation of the statement of financial position?

• Many assets are reported at historical cost.

• Judgements and estimates are used.

• Only “hard” numbers are reported.

• Disclosure of all pertinent information in the notes.

Which of the following is a current asset?

• Trade instalment receivables normally collectible in eighteen months.

• Intangible assets.

• Investment in associates (significant influence investments).

• Cash designated for the purchase of property, plant and equipment.

Which of the following would not appear in the equity section of a statement of financial position?

• Preferred shares.

• Accumulated other comprehensive income.

• Stock dividend distributable.

• Investment in affiliate.

Which of the following should be excluded from long-term liabilities?

• Derivatives.

• Employee future benefits obligations.

• Long-term liabilities maturing within the operating cycle, but will be paid from a sinking fund.

• Bonds payable maturing in five years.

Equity or debt securities held to finance future construction of additional plants should be classified on a statement of financial position as:

• current assets.

• property, plant, and equipment.

• non-current investments.

• intangible assets.