The Statement of Financial Position at December 31, 2014 Reports

question 28

Multiple Choice

The statement of financial position at December 31, 2014 reports total liabilities of

• A) €60,000.
• B) €120,000.
• C) €156,000.
• D) €238,000.

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Definitions:

Assets

Resources owned by a company that have future economic value that can be measured and can be used to generate income.

Equity

The value of an owner’s interest in a property or a company, after all debts and liabilities have been deducted.

Income Statement

An income statement is a financial statement that shows a company's financial performance over a specific accounting period, highlighting revenue, expenses, and profit or loss.

Revenues

The total amount of money received by the company for goods sold or services provided during a specific time period.