Balance Sheet/SFP

Question 1

What does it show?

Answer 1

Assets controlled by the company

liabilities owed

Question 2

When is the balance sheet shown?

Answer 2

Company position at year end date

Question 3

How are assets split?

Answer 3

Current

Non-current

Question 4

What are non-current assets?

Answer 4

Assets that will be realised in more than 12 months

Property, plant and equipment

Intangibles

Question 5

What are current assets?

Answer 5

Assets that will be realised in less than 12 months

Inventories
Receivables
Prepayments
Cash

Question 6

What are receivables?

Answer 6

Money owed by customers

Question 7

What is a liability?

Answer 7

Obligation to pay money out

Question 8

What are the key factors that identify an asset?

Answer 8

Resource controlled by the business

Lead to future returns

Question 9

What are trade payables?

Answer 9

Opposite of receivables

Question 10

What are current liabilities?

Answer 10

Borrowings
Bank overdraft
Trade payables
Accruals
Deferred income
Provision
CT payable
Other payables

Question 11

What are non-current liabilities?

Answer 11

Borrowings

Question 12

What is the formula for net assets?

Answer 12

(Current assets + Non-current assets) - (Current liabilities +Non-current liabilities)

Question 13

What does the equity sections always total?

Answer 13

Net assets

Question 14

What does retained earnings total?

Answer 14

Profits