1.

A financial statement that reports the assets, liabilities, and equity of a

company on a given date.
a. strategy of financial position b. Statement of financial position
c. Solution of freedom position d. Solution of finance position
2. Their balances in this account remain intact from one accounting period to
another.
a. Permanent Accounts b. Temporary Accounts c. Provisional
d. Conditional account
3. These are presented under the assets portion of the SFP but are balances
remain intact from one accounting period to another.

Permanent Accounts – as n name

suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to anothe
Permanent Accounts – as n name
suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to anothe
Permanent Accounts – as n name
suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to another.
Permanent Accounts – as n name
suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to another
Permanent Accounts – as n name
suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to another
Permanent Accounts – as n name
suggest, these accounts are permanent
in the sense that
their balances remain intact from one
accounting period to another
a. Free Assets b. Permanent Accounts c. Accessible Assets
d. Contra Assets
4. This is a resource controlled by the entity as a result of past events and from which future
economic benefits are expected to flow to the entity.
a. Asset b. Liability c. Equity d. Justice
5. This is the present obligation of the enterprise arising from past events,
the settlement of which is expected to result in an outflow from the
enterprise of resources embodying economic benefits.
a. Equity b. Asset c. Liability d. Benefit
6. This is the residual interest in the assets of the entity after deducting all
the liabilities.
a. Equity b. Value c. Asset d. Liability
7. An increase in the net assets of the entity during an accounting period except for
such increases caused by the contributions from owners.
a. Expenses b. Income c. Cost d. Rate
8. A decrease in the net assets of the entity over an accounting period except for
such decreases caused by the distributions to the owners.
a. Revenue b. Returns c. Profits d. Expense

Direction: Identify the following statement if they are under Current Liabilities or
Non-current Liabilities.
1. Trade Accounts Payable- are open accounts relating to purchase of goods and/or
raw materials. - Current Liabilities
2. Long-term Debt - these accounts represent bank loans as a source of financing
for the entity, long term debt can be span from 5 years to almost 25 years, it also
includes mortgage payable if certain properties are held as collateral for such loans.
Non-current Liabilities.
3. Notes- payable- are evidence by a promissory note, notes payable will have
principal amount, maturity date and interest rate. - Current Liabilities
4. Bonds Payable- are contracts of indebtedness sold to certain individuals. - Non-
current Liabilities.
5. Income tax Payable- is computed at 30% of the corporate income, for sole
proprietors, however, their taxable income is subjected to the graduated tax rates. -
Current Liabilities