Review SFP

The Statement of Financial Position is a snapshot of the financial position of the company.

• True

• False

Asset = Liabilities + Owner’s Equity is the governing equation of the Statement of Financial Position.

• True

• False

The Statement of Financial Position may be presented using acceptable formats: the account form and normal form.

• True

• False

An account is increased by an entry on the side of its normal balance and deceased by an entry on the opposite side of its normal balance.

• True

• False

Liabilities and equity have normal balance of debit.

• True

• False

The Statement of Financial Position (SFP) provides readers with the information as to the company's financial position as of a specified date.

• True

• False

Asset is an element of the SFP that has a normal balance of credit.

• True

• False

The normal balance of Unearned Income is debit.

• True

• False

The normal balance of liabilities and equity is credit.

• True

• False

Credit means to decrease an account.

• True

• False