Statement of financial position Flashcards
1
Q
What is on a Statement of financial position.
A
assets, liabilities, current A and L , non-current A and L
2
Q
Examples of current assets
A
inventory, trade receivables, cash
3
Q
Examples of current liabilities
A
trade payables, overdrafts, payroll, utilities
4
Q
Examples of non-current assets
A
buildings or premises, vehicles, goodwill, intellectual property
5
Q
Examples of non-current liabilities
A
bank loans, mortgages
6
Q
What is capital employed
A
Measure of the total resources that a business has available to it.
7
Q
What does the Financial position tells us
A
the value / worth of the business
the liquidity of the business (good or bad)
potential collateral (assets) for loan requests
shows the business’ borrowings (how much?)
Sources of borrowings:
banks or shareholders
