Statement of Financial Position Paper 1


The primary purpose of the statement of financial position is to reflect


Prepaid expenses are valued on the statement of financial position at the


Dixon Company has the following items recorded on its financial records:
Available-for-sale securities .............$200,000
Prepaid expenses............................$400,000
Treasury stock................................$100,000
The total amount of the above items to be shown as assets on Dixon’s statement of financial position is


A statement of financial position allows investors to assess all of the following except the


Abernathy Corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, Abernathy intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be


Lister Company intends to refinance a portion of its short-term debt in Year 2 and is negotiating a long-term financing agreement with a local bank. This agreement would be noncancelable and would extend for a period of 2 years. The amount of short-term debt that Lister Company can exclude from its statement of financial position at December 31, Year 1,


A statement of financial position is intended to help investors and creditors


A manufacturer receives an advance payment for special-order goods that are to be manufactured and delivered within the next year. The advance payment should be reported in the manufacturer’s current-year statement of financial position as a(n)


A cable television entity receives deposits from customers that are refunded when service is terminated. The average customer stays with the entity 8 years. How should these deposits be shown on the financial statements?


A company has outstanding accounts payable of $30,000 and a short-term construction loan in the amount of $100,000 at year end. The loan was refinanced through issuance of long-term bonds after year end but before issuance of financial statements. How should these liabilities be recorded in the balance sheet?


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