Statement of Financial Position Flashcards
What are non-current assets?
Resources owned by the business that it intends to keep for more than one year
What are current assets?
Resources that are owned by a business that are already cash or intended to become cash within 12 months
What is inventory?
Goods intended for resale but have not yet been sold.
What are trade receivables?
Customers that owe money to the business because they have bought goods on credit.
What are current liabilities?
Amounts owed by the business that must be repaid within a year
What are trade payables
Suppliers who are owed money by the business as they have sold goods on credit.
Net current assets =
Current assets - current liabilities
What are non-current liabilites?
Amounts owed by the business that will be repaid after 1 year
Net assets =
Total assets - total liabilities
Capital =
Balance at start of year + capital introduced + profit for the year - drawings
What is capital?
Money introduced or other assets provided by the owner of the business
What are drawings?
Money or goods withdrawn by owner
