chapter 9 - financial statements - part b Flashcards
1
Q
definition of:
statement of financial position
A
shows a list of assets and liabilities of a business on a certain date
2
Q
definition of:
non-current assets
A
assets which obtained for use and not for resale, which help business earn revenue
3
Q
definition of:
current assets
A
short term assets whose amounts are constantly changing
4
Q
definition of:
non-current liabilities
A
amounts owed which are not due for repayment within next 12 months
5
Q
definition of:
current liabilities
A
amounts owed which are due for repayment within the next 12 months
6
Q
statement of financial position structure
A
nca premise fixture and equipment \+ ca inventory trade receivables bank cash
= total assets
capital opening balance add profit for the year less drawings \+ ncl loan \+ cl trade payables
=total capital and liabilities
