SoFP (Exam prep)

Question 1

How should the title look for the balance sheet?

Answer 1

(Company name) - Statement of Financial Position as at (date)

E.g
Sunrise Plc - Statement of Financial Position as at 31 December 2024

Question 2

How should the layout be for the Statement of Financial Position?
(Part 1: Assets)

Answer 2

• Non-current assets:

. Property

. Plant & Equipment

. Delivery Vehicles

. Right-of-use asset

. Intangible asset - (e.g. brand name)

. Investment in Equity shares

• Current Assets (from least to most liquid)

. Inventory

. Trade receivables

. Cash and bank balances

• Total Assets

Question 3

How should the layout be for the Statement of Financial Position?
(Part 2: Equity and Liabilities)

Answer 3

• Equity

. Share Capital

. Share Premium

. Revaluation reserve

. Retained earnings

Total Equity

• Non-current Liabilities

. Loan notes

. Lease liability

. Deferred tax liability

• Current Liabilities

. Trade payables

. Lease liabilities

. Tax payable

Total Equity and Liabilities

Question 4

What things will go in the Non-Current Assets section?

Answer 4

. Property

. Plant and Equipment

. Delivery Vehicles

. Right-of-use asset

. Intangible asset - brand name

. Investment in Equity shares

Question 5

What things will go in the Current Assets section?

Answer 5

. Inventory

. Trade Receivables

. Cash and Bank balances

Question 6

What’s the main thing to remember about the current assets section?

Answer 6

. It MUST go from least to most liquid

Question 7

What things will go in the Equity section?

Answer 7

. Share capital

. Share premium

. Revaluation reserve

. Retained earnings

Question 8

What things will go in the Non-Current Liabilities section?

Answer 8

. Loan notes

. Lease liability

. Deferred tax liability

Question 9

What things will go in the Current Liabilities section?

Answer 9

. Trade Payables

. Lease Liabilities

. Tax payable