CPA Financial Accounting and Reporting (FAR) : Non-Income Financial Statements
Study concepts, example questions & explanations for CPA Financial Accounting and Reporting (FAR)
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Example Questions
Example Question #11 : Cpa Financial Accounting And Reporting (Far)
Company A reports the following account balances: Cash of $12,000; accounts receivable of $20,000; inventory of $15,000; property, plant, and equipment of $40,000; accumulated depreciation of $24,000; accounts payable of $5,000; accrued expenses of $6,000; short term notes payable of $7,000; long term notes of $10,000, and capital stock of $20,000. What were Company A's total liabilities?
$48,000
$52,000
$72,000
$28,000
$28,000
Liabilities listed include accrued expenses of $6K, accounts payable of $5K, short term notes payable of $7K, and long term notes of $10K, for a total of $28K in liabilities.
Example Question #2 : Balance Sheet
Of the following, which account would not be included in a balance sheet?
Fixed assets
Cash
Operating expenses
Note payable
Operating expenses
Operating expenses belong on the income statement rather than the balance sheet. Fixed assets and cash are assets on the balance sheet.
All CPA Financial Accounting and Reporting (FAR) Resources
