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.

Question

Quizplus · Accepted Answer

The statement of financial position reports total liabilities of €156,000. This can be verified by adding up all the liabilities listed on the statement of financial position. The liabilities are: trade payables (€48,000), bank overdraft (€22,000), loans payable (€56,000), and tax payable (€30,000), which total €156,000.

The Statement of Financial Position at December 31, 2014 Reports