Statement of Financial Position Format

question 25

Essay

Statement of financial position format
The following statement of financial position has been submitted to you by an inexperienced bookkeeper. List your suggestions for improvements in the format of the statement of financial position. Consider both terminology deficiencies as well as classification inaccuracies.

Note 1. The reserve for contingencies has been created by charges to earned surplus and has been established to provide a cushion for future uncertainties.

Note 2. The inventory account includes only items physically present at the main plant and warehouse. Items located at the company's branch sales office, amounting to $30,000, are excluded since the company has consistently followed this procedure for many years.

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Definitions:

Selfish

Exhibiting concern or care only for oneself, often at the expense of others.

Antisocial

Characterized by behavior that opposes or lacks consideration for the well-being of others, often violating social norms.

Personal Distress

A type of emotional response characterized by feelings of anxiety, discomfort, or pain that is primarily focused on oneself.

Negative Emotions

Feelings that are often described as unpleasant and arise from the awareness of danger or threat, such as sadness, anger, fear, or frustration.