Statement of Financial Position Paper 2

1

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






2

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






3

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






4

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






5

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






6

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






7

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






8

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






9

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?






10

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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