Exam 2: Measuring and Reporting Financial Position

Calculate the profit for the year if capital at the beginning is $45,000, capital at the end is $40,000 and during the year the owner withdrew $15,000.

Which of the following statements in relation to non-current assets is untrue?

Which aspect of business performance does the statement of financial position directly provide insight into?

What is the purpose of the statement of financial position?

Which accounting convention has the effect that the employees will not appear as an asset on the entity's statement of financial position?

Identify the current liability.

Which of these is not an asset?

Which of the following is a liability?

A limitation of the statement of financial position in portraying the financial position of an entity is:

What is the effect on the statement of financial position when the business pays a creditor?

The accounting convention that calls for financial reports to err on the side of caution is the:

'A present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits,' is the generally acceptable definition of:

Which of the following is not considered a deficiency of the statement of financial position?

You are provided with the statement of financial position at the beginning of the period for a firm of accountants. You are also given four of the transactions that have occurred during the period. REQUIRED: a)Complete the table to show how each transaction affects the accounts shown. b)Calculate the figures in the final column of the table from which the statement of financial position at the end of the period can be prepared. Beginning Transaction Transaction Transaction Transaction Ending Balance 1 2 3 4 Balance Sheet Sheet Assets \ \ \ \ \ \ Cash 10,000 accounts receivable 5,500 Plant \& Equip Liabilities accounts payable 6,000 Equity Transactions for the period: 1. Collected $3,000 from debtors 2. Paid accounts payable $6,000 3. Owner paid in additional capital contribution of $10,000 4. Purchased on credit $2,000 of additional plant.

In recent years, the more common format of layout for the financial statement of position is

If liabilities are $45,000 and equity is $68,900, assets are:

What is the effect on the statement of financial position when the business buys a car for $35,000, paying a deposit of $10,000 and promising to pay the balance within 60 days?

What is another name for accounts receivable?

The statement of financial position assists users in terms of:

The accounting convention that states that every transaction has at least two effects on the accounting equation, so that after the transaction is processed, the equation remains in balance is the: