5.4 Statements of Financial Position


5.4.1 The main elements of a statement of financial position

  • non-current assets, e.g. property (land and buildings), machinery
  • current assets, e.g. inventory, trade receivables, cash
  • non-current liabilities, e.g. bank loans
  • current liabilities, e.g. trade payables, overdraft
  • concept of capital employed
  • make simple calculations based on statements of financial position: total assets, total liabilities,
    working capital
  • make decisions based on simple statements of financial position

Minimum Time = 25 minutes