Statement of Financial Position Paper 2


A statement of financial position provides a basis for all of the following except


Noncurrent debt should be included in the current section of the statement of financial position if


A receivable classified as current on the statement of financial position is expected to be collected within


A company pays more than the fair value to acquire treasury stock. The difference between the price paid to acquire the treasury stock and the fair value should be recorded as


The purchase of treasury stock is recorded on the statement of financial position as a(n


Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During the first year of operations, net income was $25,000. On December 15, Rice paid a $2,000 cash dividend. No additional activities affected equity in Year 6. At December 31, Year 6, Rice’s liabilities had increased to $94,000. In Rice’s December 31, Year 6 balance sheet, total assets should be reported at


Which one of the following is not a form of off-balance-sheet financing?


When treasury stock is accounted for at cost, the cost is reported on the balance sheet as a(n)


Zinc Co.’s adjusted trial balance at December 31, Year 6, includes the following account balances:
Common stock, $3 par...................... $600,000
Additional paid-in capital.................... 800,000
Treasury stock, at cost....................... 50,000
Net unrealized holding loss on available
-for-sale securities............................. 20,000
Retained earnings: appropriated for
uninsured earthquake losses................ 150,000
Retained earnings: unappropriated........ 200,000
What amount should Zinc report as total equity in its December 31, Year 6, balance sheet?


On December 1, Noble Inc.’s Board of Directors declared a property dividend, payable in stock held in the Multon Company. The dividend was payable on January 5. The investment in Multon stock had an original cost of $100,000 when acquired 2 years ago. The market value of this investment was $150,000 on December 1, $175,000 on December 31, and $160,000 on January 5. The amount to be shown on Noble’s statement of financial position at December 31 as property dividends payable would be


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