1.

In presenting a statement of financial position, an entity

Must make the current and noncurrent presentation, except when a presentation based on
liquidity provides information that is reliable and more relevant.
2. Assets to be sold, consumed or realized as part of the normal operating cycle are
Current assets
3. Liabilities that an entity expects to settle within the normal operating cycle are classified as
Current liabilities
4. In which section of the statement of financial position should cash for the settlement of a liability due
18
months after the reporting period be presented?
Noncurrent assets
5. In which section of the statement of financial position should employment taxes that are due for
settlement in 15 months’ time be presented?
Current liabilities