Statement of financial position

Question 1

Statement of financial position

Answer 1

shows the value of a business’s assets and liabilities at a particular time.

Question 2

assets

Answer 2

are those items of value which are owned by the business. They may be non-current (fixed) assets or (short term) current assets

Question 3

Liabilities

Answer 3

are debts owned by the business. They may be non-current (long-term) liabilities or (short-term) current liabilities.

Question 4

Non-current assets

Answer 4

are items owned by the business for more than one year

Question 5

Current assets

Answer 5

are owned by a business and used within one year

Question 6

Non-current liabilities

Answer 6

are long-term debts owed by the business, repaid over more than one year

Question 7

Current liabilities

Answer 7

are short-term debts owed by the business, repaid in less than one year.

Question 7

Current liabilities

Answer 7

are short-term debts owed by the business, repaid in less than one year.