Statement of financial position

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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
  • 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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