Podcast
Questions and Answers
Which of the following is an example of an asset on a statement of financial position?
Which of the following is an example of an asset on a statement of financial position?
- Retained earnings
- Accounts payable
- Accounts receivable (correct)
- Common stock
Which of the following is a liability on a statement of financial position?
Which of the following is a liability on a statement of financial position?
- Inventory
- Long-term debt (correct)
- Prepaid expenses
- Accumulated depreciation
Which of the following is a key component of a statement of financial position?
Which of the following is a key component of a statement of financial position?
- Net income
- Sales revenue
- Accounts payable (correct)
- Cost of goods sold
Which of the following topics is covered in the free course 'Ratio, proportion and percentages'?
Which of the following topics is covered in the free course 'Ratio, proportion and percentages'?
Which of the following is an example of expressing a ratio?
Which of the following is an example of expressing a ratio?
Which of the following is an example of expressing a proportion?
Which of the following is an example of expressing a proportion?
Which of the following is an example of expressing a percentage?
Which of the following is an example of expressing a percentage?
Which of the following is an example of dividing something into parts?
Which of the following is an example of dividing something into parts?
Study Notes
Financial Statement Components
- Assets are items that a company owns or controls and are expected to generate future economic benefits.
- Liabilities are debts or obligations that a company owes to others.
Ratio, Proportion, and Percentages
- A key component of a statement of financial position is the presentation of a company's assets, liabilities, and equity.
- A ratio is a comparison of two quantities, such as a company's current assets to its current liabilities.
- Proportion is a relationship between two quantities, such as a company's sales to its total revenue.
- A percentage represents a value as a fraction of 100, such as a 25% increase in sales.
- Dividing something into parts is known as partitioning, and is a fundamental concept in ratio, proportion, and percentage calculations.
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Description
Test your knowledge of statement of financial position with this multiple choice quiz! Identify key components and examples of assets and liabilities on a statement of financial position.
