IGCSE Business Studies - Statement of Financial Position

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Unit 5
TOPIC(S): Statement of Financial Position
PAGE(S):


1.1 Main Parts of a Statement of Financial Position

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A statement of financial position (s.f.p) shows
the financial position of a business at a certain KEY WORDS
point in time.
Asset: resources owned by a
It is a record of a business’s assets and business.
liabilities.
Liabilities: debts of the
Shows how a business finances its operations. business to stakeholders.
By law, limited companies must produce a s.f.p
at the end of every financial year.

Procedure:

Sort out assets, liabilities and equity.

Statement of financial position.




💡 ADDITIONAL FORMULAS

Net current asset: Current
Assets — Current Liabilities

Net asset: Total Assets - Total
Liabilities

Capital Employed: Equity +
Non-current liability




Unit 5 1