The Statement Of Financial Position

Question 1

What is the equation for calculating assets?

Answer 1

Assets= capital + liabilities

Question 2

What are assets?

Answer 2

An assets is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.

Question 3

What are liabilities?

Answer 3

a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources/cash

Question 4

What is capital?

Answer 4

The residual interest in the assets used to build, run and expand the business

Question 5

What would you find on the ‘Statement of financial position’?

Answer 5

Non-current assets, current assets, total assets, capital & liabilities, non-current liabilities, current liabilities and total capital liabilities

Question 6

What is the statement of financial position?

Answer 6

Lists the assets, capital liabilities at a particular point in time and shows the position of a company at given point in time