The statement of financial position is a financial statement that showsboth the gross profit and net profit of a businessthe income and expenses of a businessthe financial position of the business in terms of its assets, liabilities and equityO the owner's equity in a business

The statement of Financial Position shows what a company owns and what a company owes to the…

The statement of financial position is a financial statement that shows both the gross profit and net profit of a business O the income and expenses of a business O the financial position of the business in terms of its assets, liabilities and equity O the owner's equity in a business

The statement of financial position is a financial statement that shows both the gross profit and net profit of a business O the income and expenses of a business O the financial position of the business in terms of its assets, liabilities and equity O the owner's equity in a business

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 6MC

See similar textbooks

Related questions

Q: define financial accounting and explain its role in business

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: List the categories that are on the balance sheet for a business.

A: Definition: Balance sheet: This financial statement reports a company’s resources (assets) and…

Q: Focus on individual part or segment of business” explain this statement according to management…

A: Segmentation in a business can be done in a various ways like geographically, product wise, areas of…

Q: o use the reformulation of financial statements to discuss the firm’s strategy for running the…

A: Financial statement A financial statement refers to those which are prepared in order to ascertain a…

Q: Give an example of situation to show how a business adheres to each of the following accounting…

A: HISTORICAL COST - as per the historical cost concept, every company must record its assets and…

Q: Revenue from sources other than the primary operating activity of a business like interest expense…

A: The Multistep income statement categories the different revenues and expenses incurred during the…

Q: In a business, explain the significance of the Statement of Comprehensive Income and the Statement…

A: Introduction: The term "statement of comprehensive income" refers to the financial statement that…

Q: Financial accounting can also be described as a way to a. Tell the financial story of a company.b.…

Q: Which of the following is an item found on a company's balance sheet? a. Net Income b. Owners'…

A: SOLUTION- OWNERS EQUITY- IT IS THE AMOUNT THAT BELONGS TO THE OWNERS OF THE BUSINESS AS SHOWN ON THE…

Q: Explain how accounting is used to track and monitor the economic events that impact business…

A: Accounting is defined in simple terms as an art of keeping the record of financial transactions of a…

Q: What is the importance of financial statements in business? Mention what each financial statement…

A: Financial statements are imperative since they contain imperative data around the monetary wellbeing…

Q: Define Accounting and its importance in the field of business.Define owner’s equity and how it is…

A: Accounting is a system that identifies ,records and communicates relevant information that is…

Q: MCQS: External reporting is the result of? (a) Financial accounting (b) Management…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: how does business owners can use the statement of profit and loss or income statement and balance…

A: The business needs a variety of financial statements to function in the business society. The…

Q: What does an Income statement tell about a business?

A: An entity requires details about its operations such as profits, financial position and cash flows…

Q: For money to accrue to a business, it needs to: a.Have been earned by the business b.Have been…

A: As per revenue recognition principles, if a company follows accrual method of accounting then…

Q: Explain the effect of operating profitably on the balance sheet of a business entity.

Q: The result of financial statement analysis may reflect the effectiveness of management in handling…

A: Financial analysis helps in analyzing and interpreting the statement of business it helps in…

Q: Explain the following four Financial Statements as it relates to the Management of a Small and…

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarizing and…

Q: Name and briefly explain the three major financial statements? How does each relate to the…

A: The statement that reveals the financial activities of a business along with its financial…

Q: The......of a business is the amount of income A-Revenue B-venture C-assest D-fund

A: A business is described as an organization or enterprising entity engaged in commercial,…

Q: What are the rights of creditors (claims against the assets of the company--creditors' equity) that…

A: The creditor is the person to whom the company owes money at the later date. Creditors are the one…

Q: One among the following are economic activities or events in the business that can be measured in…

A: The business report shows the information of the different activities. and financial information of…

Q: Which among the following statements shows the financial position of a business as on a particular…

A: The income statement determines the net income of the business by subtracting the total expenses…

Q: Management uses the financial analysis to: O Make decisions related to the operations of the company…

A: Solution: Financial analysis is a process of evaluating projects, budgets, business performance and…

Q: The income statement reports the firm's revenues and expenses, and it computes the firm's bottom…

A: The income statement is one of the financial statements that are issued by the company for the users…

Q: Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of…

Q: Dividends

A: Option "a" is wrong because the amount , the owner has taken out of business for personal use is…

Q: financial statements in any business organization

A: Financial Statements of the company include income statements, balance sheets, and cash flow…

Q: The financial statement that shows the profitability of a business entity is known as: Group of…

A: Financial statements are prepared to show the financial position, financial performance and cash…

Q: How are financial statements used by business?

A: Answer: Introduction: Financial statements are nothing but detailed reports of a company, individual…

Q: 1. When did the business call accountable? 1. Business Activities are accountable when they are…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Using the following categories, discuss the differences that exist between accounting for these…

A: Accounting is the process of defining, assessing, and reporting transactions to oversight…

Q: Financial statements should reflect a true and fair view of the business. Explain in your own words…

A: Financial statements are the reports those are prepared by an organization to estimate the…

Q: Show how the below transactions affect the financial position of the business as represented by A =…

A: As per accounting equation of the business, total assets must be equal to total liabilities and…

Q: What requirement is imposed by the double-entry system in the recording of any business transaction?

A: “Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: Account which shows Gross Profit or Gross Loss of the business is called: Profit and Loss Account…

A: Trading Account is a part of financial statements of a company which shows the results of buying and…

Q: Which of the following gives the details about the financial position of the business?

A: Finance - This is related to the Financing activities which includes borrowing money from the bank…

Q: As per the accounting equation, equity can be represented as __________________. Excess of assets…

A: Accounting is the detailed process of book keeping. Under the first step of accounting, all…

Q: When did the business call accountable? 1. Business Activities are accountable when they are called…

A: The business calls accountable when business activities are the business transactions and business…

Question

The statement of financial position is a financial statement that shows
both the gross profit and net profit of a business
the income and expenses of a business
the financial position of the business in terms of its assets, liabilities and equity
O the owner's equity in a business

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c. Sales Ă· Assets b. Assets Ă· Equity d. Net Income Ă· Net Sales
The metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholders
Explain the concept of equity, and identify some activities that affect equity of a business.
Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assets
That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?
Comprehensive income: includes transactions that affect stockholders equity with the exception of those transactions that involve owners. is considered an appropriation of retained earnings. includes all transactions that are under managements control. is the result of all events and transactions reported on the income statement.
Distributions of the net income of a business to its owners are called: O dividends O monetary unit O auditing O earnings
The financial statement that shows the profitability of a business entity is known as: Group of answer choices Balance sheet and statement of retained earnings Balance sheet and income statement Income statement Statement of retained earnings
Which of the following accounting concepts considers the investment made by the owner in the business as the liability of the business? a.Dual aspect concept , b.Money measurement concept , c.Business entity concept , d.Going concern concept
In a business, explain the significance of the Statement of Comprehensive Income and the Statement of Financial Position for the company.