TASK
Q1– Explain the uses and limitations of a statement of financial position (3 Marks).
Q2- Explain the pronouncements issued by IASB. (3Marks).
Q3. From the information given, prepare a statement of retained earnings. . (4Marks).
ABC corporation had an initial investment of SAR50,000 cash and other information was as follows:
| Accounts payable | SAR12,000 | Office furnishings | SAR40,000 |
| Accounts receivable | 23,000 | Dividends | 6,000 |
| Cash | 17,200 | Rent expense | 3,600 |
| Fees earned | 30,000 | Salaries expense | 6,200 |
| Notes payable | 4,250 | Telephone expense | 250 |
Q4. From the following information of XYZ Company, prepare a multi-step income statement For the Year Ended December 31, 2021 (5 Marks).
Sales $137,460
Sales Returns $2,060
Sales Discounts $5,190
Cost of Goods Sold $62,990
Freight-Out $6,150
Advertising Expense $5,790
Sales Commissions Expense $3,470
Office Salaries Expense $18,510
Office Rent Expense $14,000
Office Supplies Expense $5,330
Gains on Sale Equipment $2,430
Loss on Sales of Investments $1,640
Interest Expense $930
