Statement of financial position
- Created by: Adriana Jeciu
- Created on: 03-12-22 00:23
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- Statement of financial position or balance sheet shows us the value of a business at particular moment in time
- It is a snapshot of a business financial position in terms of:
- What it ownes
- Total equity
- What it owes
- Asset - something the business owns that has value
- Current-asset
- Cash in bank
- Fixed asset or non-current asset
- Machinery/ equipment
- Current-asset
- Liability- money that a business owes
- Current liabilities
- Lont-term liabilities
- Inventory (stock)
- Property
- Short-term borrowing (credit card or overdraft)
- Account payable (money that business owes to its suppliers)
- Mortgage
- Bankloan
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