Week 2 - What Makes Up the Statement of Financial Position

Question 1

What does the statement of financial position tell us?

Answer 1

The financial position of an entity at a point in time (what the entity owns and what it owes to others)

Question 2

What would we expect a company like Next to own?

Answer 2

Property, stock (inventory), cash, tills, customer debts (trade receivables)

Question 3

Who would we expect a company like Next to owe money to?

Answer 3

Bank loan, other loans, suppliers (trade payables), HMRC (tax payables)