Chapter 22 - Statement of Financial Position

Question 1

Statement of Financial Position

Answer 1

An accounting statement that records the assets, liabilities and owners’ equity of a business at a particular date

Question 2

Assets

Answer 2

Resources that are owned by a business

Question 3

Liabilities

Answer 3

Debts of a business that will have to be paid sometime in the future

Question 4

Non-Current Assets

Answer 4

Resources that a business owns and expects to use for more than a year

Question 5

Current Assets

Answer 5

Resources that a business owns and expects to convert into cash before the date of the next statement of financial position

Question 6

Trade Receivables

Answer 6

The amount owed to a business by its customers who bought goods on credit

Question 7

Trade payables

Answer 7

The amount a business owes to its suppliers for goods bought on credit

Question 8

Current Liabilities

Answer 8

Debts of a business which it expects to pay before the date of the next statement of financial position

Question 9

Non-Current Liabilities

Answer 9

Debts of a business which will be payable after more than 1 year

Question 10

Owners’ Equity

Answer 10

The amount owed by a business to its owners; includes capital and retained profits

Question 11

Shareholders’ Equity

Answer 11

Alternative term used for owners’ equity - only applicable for limited companies