Statement of Financial Position

Question 1

It is made up of 3 sections

Answer 1

• assets
• liability
• equity

Question 2

Assets

Answer 2

• resources owned & controlled

- current & non-current

Question 3

Question for assets

Answer 3

• what does the company have?

Question 4

Note for assets

Answer 4

• deduct accumulated depreciation for NCA

Question 5

Liability

Answer 5

• to get the assets

- current & non-current

Question 6

Equity

Answer 6

• Financing from the shareholders

- includes - RE & Share Capital

Question 7

Question for Equity

Answer 7

• What is financed by the owners?

Question 8

Accounting Equation

Answer 8

Total Assets = Total Liability + Equity

- use it for checking purposes

Question 9

Statement of financial position

Answer 9

• judge the financial health of the company at a point in time

Question 10

It is used

Answer 10

• show the investors + lenders that it can pay its debts

- show other creditors that it has enough assets