Statement of Financial Position Keywords

Question 1

Tangible

Answer 1

Physical

Question 2

Intangible

Answer 2

Non-physical

Question 3

Non-current assets

Answer 3

Assets that are owned by a business which are not easily converted to cash within a year

Question 4

Current assets

Answer 4

Assets that are expected to be converted to cash within a year

Question 5

Non-current liabilities

Answer 5

Debts a business owes, but isn’t due to pay for 12 months

Question 6

Current liabilities

Answer 6

Amounts due to be paid to creditors within 12 months

Question 7

Equity

Answer 7

The ownership’s claim on total assets

Question 8

Receivables

Answer 8

Customers who have received the goods but have not yet paid for them

Question 9

Payables

Answer 9

Creditors that the business has bought goods from but still owes money

Question 10

Double-entry bookkeeping

Answer 10

Records financial effects of transactions or events on the business. Captures two effects on the business for each transactions

Question 11

Trial balance

Answer 11

A summary of all the separate accounts of an organisation; its purpose is to provide a list of the total of each account held by the organisation

Question 12

Conceptual framework

Answer 12

Provides definitions, principals and concepts that have to be applied in preparation of financial statements

Question 13

Income

Answer 13

Refers to an increase in economic benefit during the accounting period

Question 14

Expenses

Answer 14

Reduction in economic benefit during the accounting period. Costs consumed in the period in which related income has been earned

Question 15

Statement of financial position

Answer 15

Snapshot of the company’s financial position at a specific moment in time