Statement of Financial Position (CH8)

Question 1

What is the Statement of Financial Position?

Answer 1

Balance sheet. Shows a snapshot of the financial position.

Question 2

What is the SFP divided into?

Answer 2

Assets and Equities + Liabilities.

Question 3

What’s the difference between Current and Non-Current Assets?

Answer 3

Current = assets due within a year. Non-current are assets not due within a year.

Question 4

What’s a Tangible Asset?

Answer 4

Assets with physical substance.

Question 5

How are Tangible Assets recorded on the SFP?

Answer 5

At cost/book value.

Question 6

What are Non-Tangible Assets?

Answer 6

Assets to generate economic benefits over a long-term period without any physical substance, e.g. Software patents.

Question 7

What are Non-Current Investments?

Answer 7

Investments that aren’t going to be solf or mature within the next year.

Question 8

How are Non-Current Investments recorded?

Answer 8

At cost (minus any impairment to their value where applicable).