FABM2_SFP_Part1

Financial statements are the end product of the accounting process.

• True

• False

Financial statements provide information on an entity's financial position and results of its operations. Information on results of operations is shown in the balance sheet.

• True

• False

Building is a current asset.

• True

• False

Entity A's statement of financial position shows total assets of 100 php and total current assets of 40 php. Therefore, Entity A's total noncurrent assets is 140 php.

• True

• False

Entity A's statement of financial position shows total assets of 100 php and total equity of 30 php. Therefore, Entity A's total liabilities is 130 php.

• True

• False

The statement of financial position provides information on how cash and cash equivalents were generated and used during the period.

• True

• False

Cash and cash equivalents are current assets.

• True

• False

SALN is an example of statement of financial position.

• True

• False

Inventory is a noncurrent asset.

• True

• False

Accounts payable is normally presented in the SFP as a noncurrent liability.

• True

• False