Direction: Complete the following Statement of Financial Position. DO NOT PUT A COMMA IN YOUR ANSWER. Tulang Enterprise Statement of Financial Position December 31,2016 Current Assets: Cash and cash equivalents P133 750 Investments in Trading Securities 50 000 Trade and Other Receivables 51 500 Prepaid Expenses P 275 250 Total Current Assets Non-Current Assets: Property, Plant, and Equipment 441 500 P Total Assets: 2 Current Liabilities Trade and Other Payables 3 Non-Current Liabilities Mortgage Payable P100,000 Total Liabilities: 4 Owner's Equity: Nestor Tulang, Capital P 479 750 Total Liabilities and Owner's Equity 5 Additional information: The Investments in Trading Securities account is 25% above Prepaid Expenses. 1. How will an increase in expenses affect the income statement of an organization? A. Increase in the income statement C. Income statement is not affected B. Decrease in the income statement D. Insufficient data _2. Which of these would most likely cause the assets of an organization to increase? A. Increase in liabilities and capital C. Increase in liabilities, decrease in capital B. Decrease in liabilities and capital D. Decrease in liabilities, increase in capital 3. Which type of firm uses finished goods inventory? A. Service firms C. Manufacturing firms B. Trading firms D. Non-profit firms 4. Which of these is NOT included in the total manufacturing cost? A. Direct materials C. Manufacturing overhead B. Direct labor D. Total goods available for sale 5. This is the difference between net sales and cost of goods sold. A. Net income C. Gross profit B. Income before taxes D. Operating profit 6. New Line Cinema bought new software for their company using a loan. How will the balance sheet be affected? A. Decrease in assets, increase in liabilities C. Increase in assets, increase in equity B. Increase in assets, increase in liabilities D. Decrease in assets, decrease in equity 7. Which of these is a non-current asset? A. Cash C. Prepaid utilities B. Accounts receivable D. Patents 8. What are the two (2) ways to report the balance sheet? A. Account and report form C. Report and activity form B. Account and standard form D. Report and standard form 9. If the company's assets are P500.000 and its liabilities are P200,000, what is the owner's equity? A. P700,000 C. P200,000 B. P300,000 D. P500,000 _10. Which of these is the correct way to present the time period of a balance sheet? A. For the year ended Dec. 31, 2016 C. As of December 31, 2016 B. For the years 2015 and 2016 D. As of 2016