Review ABM2

Which of the following is listed first in a Statement of Financial Position?

• Asset

• Income

• Liabilities

• Owner's Equity

What is the distinct feature of the report form of Statement of Financial Position?

• It is presented horizontally.

• It follows the format of the accounting equation.

• It is presented vertically.

• It lists all Assets first, followed by Liabilities, then Equity.

From which financial statement is the amount in the Owner’s Capital in the Total Liabilities and Owner’s Equity section of the Statement of Financial Position based?

• Statement of Cash Flows

• Statement of Changes in Owner’s Equity

• Statement of Comprehensive Income

• Notes to Financial Statement

Which of the following forms of Statement of Financial Position is easier to read when compared to a different year?

• account form

• basic form

• report form

• equal form

Which of the following accounts should be listed under the Owner’s Equity of a Sole Proprietorship company?

• Common Stocks - ₱20,000

• Mr. Perez, Capital - ₱10,000

• Retained Earnings - ₱5,000

• Preferred Stocks - ₱25,000

Company ABC is preparing its Statement of Financial Position. Its accountant has already prepared the headings of the statement. Which of the following should the accountant do next?

• Classify the assets into current and non-current accounts, and place them in the assets column.

• Copy the Ending Capital and place it under the subheading of Owner’s Equity.

• Compute the totals of current and non-current liabilities and total equity.

• Determine the totals of current and non-current assets from the general ledgers.

A sole proprietorship business is engaged in selling second hand cars. The business currently has 20 cars as inventory. How will the cars be classified in the Statement of Financial Position?

• current asset

• current liabilities

• non-current assets

• non-current liabilities

f the total current assets of a company is ₱82,000, total non-current assets is ₱150,000, and owner’s capital is ₱142,000, how much is the total liabilities of the company?

• ₱142,000

• ₱322,000

• ₱232,000

• ₱90,000

The following are account balances of DC Company for the year ended, December 31, 2021. How much is the Net Income for the year?

• ₱230,000

• ₱213,000

• ₱158,000

• ₱303,000

The elements that can be found in a statement of comprehensive income are ___________________________. Which of the following will make the statement correct?

• assets and liabilities

• liabilities and expenses

• assets and income

• income and expenses