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What is the Statement of Financial Position?The statement of financial position is another term for the balance sheet. The statement lists the assets, liabilities, and equity of an organization as of the report date. As such, it provides a snapshot of the financial condition of a business as of a specific date. It is one of the financial statements, and so is commonly presented alongside the income statement and statement of cash flows. How to Use the Statement of Financial PositionThe information on the statement of financial position can be used for a number of financial analyses, such as comparing debt to equity or comparing current assets to current liabilities. These analyses are typically presented on a trend line, so that you can detect any changes in the financial position of the reporting entity over time. Format of the Statement of Financial PositionThe format of the statement of financial position follows the basic accounting equation, which states that: Assets = Liabilities + Equity This means that all asset line items are presented first, with a total that matches the totals for liabilities and equity, which are presented next. Contents of the Statement of Financial PositionCommon line items in the report are noted below. Assets
Liabilities
Equity
When the Statement of Financial Position is UsedThe statement of financial position is most commonly issued when a business is operating under a double entry accounting system, since this approach provides for ongoing updates to asset, liability, and equity accounts. If an entity is instead using a single entry accounting system, there is no easy way to construct the statement, which is usually compiled manually. In addition, the statement provides more meaningful information when it is prepared using the basic accounting principles mandated by the accounting frameworks, such as generally accepted accounting principles or international financial reporting standards. 23.Which of the following is not required to be presented as minimum information on the face of thestatement of financial position? Get answer to your question and much more 24.Which of the following must be included as a line item in the statement of financial position? Get answer to your question and much more 25.Which statement about the statement of financial position is not true? Get answer to your question and much more CHAPTER 91.It is a change in equity during a period resulting from transactions and other events, other thanthose changes resulting from transactions with owners in their capacity as owners.a. profit or lossb. comprehensive incomec. other comprehensive incomed. share capital 2.Comprehensive income includes Get answer to your question and much more 3.It is the total income less expenses, excluding other comprehensive income. Get answer to your question and much more 4.It comprises items of income and expense, including reclassification adjustments, that are notrecognized in profit or loss as required or permitted by PFRS. Get answer to your question and much more 23. Which of the following must be included as a line item in an entity’s statement of financialposition?a.Investment propertyc. Contingent liabilityb.Number of shares authorizedd. Shares in an entity owned by the  Uploaded by: trixiaalvarado Step-by-step answersumacinia pulvi ia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magn Subscribe to view the full answerWhy Join Course Hero?Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.
What elements must be included in the statement of financial position?The main elements of financial statements are as follows:. Assets. These are items of economic benefit that are expected to yield benefits in future periods. ... . Liabilities. These are legally binding obligations payable to another entity or individual. ... . Equity. ... . Revenue. ... . Expenses.. What are line items in financial position?line item (plural line items) An item appearing on a single line in any schedule of information. (accounting) An item of revenue or expenditure in a budget or other financial statement or report.
What's the most important line item on a financial statement?Many experts believe that the most important areas on a balance sheet are cash, accounts receivable, short-term investments, property, plant, equipment, and other major liabilities.
Which are all the line items in the balance sheet?The items which are generally present in all the Balance sheet includes: Assets like cash, inventory, accounts receivable, investments, prepaid expenses, and fixed assets. Liabilities like long-term debt, short-term debt, Accounts payable, Allowance for the Doubtful Accounts, accrued and liabilities taxes payable.
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Which of the following must be included as a line item in the statement of financial position?
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