Answered: The following totals are taken from the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following totals are taken from the statement of financial position of Stream Company: Current assets P350,000 Long-term assets 800,000 Current liabilities 240,000 Long-term liabilities 270,000 Additional information: (a) Cash of P38,000 has been placed in a fund for the retirement of long-term debt. The cash and long-term debt have been offset and are not reflected in the financial statements. (b) Long-term assets include P50,000 in treasury shares. (c) Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements. (d) Advances on salespersons' commissions in the amount of P21,000 have been made. Also, sales commissions payable total P24,000. The net liability of P3,000 is included in Current Liabilities. Compute for the adjusted totals of Stream's current assets. Group of answer choices P350,000 P364,000 P423,000 P385,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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