STAT. OF FINANCIAL POSITION

• What are assets?

  resources used or owned by a business such as cash, stock, machinery, tools and equipment
• What are liabilities?

  the debts of a business, which provide a source of funds
• What is capital?

  finance provided by the owners of the business
• What are current liabilities?

  debts that have to be repaid within a year
• What are net current assets?

  current assets - current liabilities

  (also called working capital)
• What are non-current liabilities?

  debs that are payable after 12 months
• What are net assets?

  value of all assets - value of all liabilities
• What are non-current assets?

  assets that will last for more than one year
• What are current assets?

  assets likely to be changed into cash within a year
• What is liquidity?

  the ease or speed with which an asset can be sold for cash
• What is goodwill?

  the value a company has because of its good relationships with customers and suppliers
• What is the statement of financial position?

  a summary at a point in time showing a businesses assets, liabilities and capital (also called a balance sheet)
• What are the features of a statement of financial position?

  • non-current assets
  • net current assets
  • net assets
  • current assets
  • current liabilities
  • non current liabilities
  • shareholders equity