Statement Of Financial Position Flashcards
What is the layout for a SFP
Non current assets Current asest Equity and liabilities Equity Non current liabilites Current liabilites
What should you check before you start working with figures
The money key
How do you calculate assets
Capital + liabilities
Capital + Liabilites =
Assets
Assests - liabilites =
Capital
Another term for revenue is
Sales
Assest - capital =
Liabilites
How do you calcualte liabilites
Assests - capital
Name two important reasons for preparing a financial position
- Shows the relationship between assets and claims on the assests
- helps to asess the performance of a business better
- shows how a business is financed
- shows how funds are being deployed
- serves as the basis of assesingthe value of a business
Name 3 important reasons for preparing a SFP
- Shows the relationship between assets and claims on the assests
- helps to asess the performance of a business better
- shows how a business is financed
- shows how funds are being deployed
- serves as the basis of assesingthe value of a business
What are the 5 reasons for creating an SFP
- Shows the relationship between assets and claims on the assests
- helps to asess the performance of a business better
- shows how a business is financed
- shows how funds are being deployed
- serves as the basis of assesingthe value of a business
What does the SFP show
Assets + liabilites / owners equity and reserves
What comes under current assest?
Inventory
Trade recivables
Pre paid motor expences
Bank
What comes under current liabilites
- trade payables
- accruals
What comes under non current asssets
Equipment at cost
Any property or veichales
(Include Deprecation )
