Fundamentals of Accounting 2

A statement of financial position can be best described as a:

• listing of money received and paid during the past year

• summary of what happened last year

• summary of all assets, expenses, liabilities, and revenues

• summary of the position of an organization

Which of the following definition denotes an asset?

• expense that will recur in more than one year

• obligation to transfer benefits as a result of past transactions

• interest of the owner in the business

• any financial resources that is used by the business in its operation trade-offs

The Statement of Financial Position equation is:

• A - C = L

• L + C = A

• A - L = C

• all of the above

Brod Pete have non-current assets of 560,000, current assets of 570,000, current liabilities of 540,000,

and a long-term loan of 50,000; as such the owners’ equity will be:

• 540,000

• 550,000

• 560,000

• 570,000

What is a financial statement that shows the financial position of an enterprise at a particular

point in time?

• Statement of Financial Position

• Cash Flow Statement

• Income Statement

• Statement of Changes in Equity

A Statement of Financial Position

• Shows the changes of the owners interest

• Reports the assets and claims of an enterprise at a specified moment in time

• Presents revenues and expenses of an enterprise

• Reports the inflow and outflow of cash in an enterprise

Which of the following transactions would increase cash as well as non-current liabilities?

• Long-term bank loan

• Purchasing equipment on credit

• Payment to suppliers

• Payment from customers

Which of the following accounts is a current asset?

• Bond Payable

• Property, plant, and equipment

• Trade and other payables

• Trade and other receivables

Which of the following accounts is a non-current asset?

• Accounts Payable

• Capital

• Cash

• Trademarks

Which of the following accounts is a current liability?

• Trade receivables

• Retained earnings

• Trade payables

• Machineries