Statement of Financial Position MCQs

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






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






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






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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....






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A manufacturer receives an advance payment for special-order goods that are to be manufactured and delivered within the next year. The advance payme...






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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 ...






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






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Dixon Company has the following items recorded on its financial records: Available-for-sale securities .............$200,000 Prepaid expenses..........






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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...






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A cable television entity receives deposits from customers that are refunded when service is terminated. The average customer stays with the entity ...






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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 refinan...






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






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






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






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






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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 ope...






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






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






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Zinc Co.s adjusted trial balance at December 31, Year 6, includes the following account balances: Common stock, $3 par...................... $600,00...






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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 o...






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A statement of cash flows is intended to help users of financial statements






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Unrealized gains and losses on trading securities should be presented in the






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Johnstone Company owns 10,000 shares of Breva Corporation’s stock; Breva currently has 40,000 shares outstanding. During the year, Breva had net in...






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Entity X owns 90% of Entity Y. Early in the year, X lent Y $1,000,000. No payments have been made on the debt by year end. Proper accounting at year ...