A Statement of Financial Position (Balance Sheet) Flashcards
1
Q
What does a statement of financial position show?
A
The overall value of a business
2
Q
Why is a statement of financial position a legal requirement for limited companies?
A
A statement of financial position allows Investors and potential investors to use to determine whether they will get a good return on their investment. A statement of financial position is also included in the business plan of a limited company.
3
Q
What does a balance sheet show?
A
A balance sheet measures the assets and liabilities of a
Business.
4
Q
What are assets?
A
An item of property owned by a person or company. Something that a business owns.
5
Q
What are the 2 types of assets that businesses will need to consider?
A
Fixed Assets
Current Assets
