Examkin

Soru

Zorluk: KolayPreparation of Company Statement of Financial Position

Match each financial item of a public limited company to its appropriate section in the Statement of Financial Position.

  • Share Premium AccountReserves and Surplus
  • 10% Debentures (repayable in 5 years)Non-Current Liabilities
  • Trade ReceivablesCurrent Assets
  • Proposed Dividend PayableCurrent Liabilities

Cevap

Share Premium Account matches Reserves and Surplus, 10% Debentures matches Non-Current Liabilities, Trade Receivables matches Current Assets, and Proposed Dividend Payable matches Current Liabilities.
In a company's Statement of Financial Position, Share Premium is presented under Reserves and Surplus (Equity), Debentures payable in 5 years fall under Non-Current Liabilities, Trade Receivables fall under Current Assets, and Proposed Dividend Payable is listed under Current Liabilities.

Adım Adım Çözüm

1
Identify equity components and capital reserves.
Share Premium Account is matched to Reserves and Surplus.
Share premium is an equity reserve representing premiums received on share issues.
2
Distinguish between long-term obligations and short-term liabilities.
10% Debentures match Non-Current Liabilities, while Proposed Dividend Payable matches Current Liabilities.
Debentures maturing in 5 years are long-term liabilities, whereas proposed dividends must be settled within the upcoming accounting period.
3
Classify short-term operational assets.
Trade Receivables match Current Assets.
Amounts owed by trade debtors are realized as cash within a short operational cycle.

Anahtar Kavram

Classification of Company Balance Sheet Items
Bu soruyu puanla

Konular

Preparation of Company Statement of Financial Position

Bu konudan daha fazla soru