Statement of financial position Flashcards
1
Q
Statement of financial position -
A
summary at a point in time of business assets, liabilities and capital
2
Q
Liabilities -
A
debts of the business which provide a source of fund
3
Q
Assets =
A
Liabilities + Capital, because all resources purchased by a business have to be financed from either capital or liabilities
4
Q
Trade receivables -
A
amounts of money that are owed to a company by its customers
5
Q
Net current assets - Working capital -
A
current assets - current liabilities
6
Q
Net assets =
A
working capital + non-current assets - non-current liabilities
7
Q
Capital employed =
A
net assets
8
Q
Goodwill -
A
value that a company has because it has a good relationship with its customers and suppliers
