Statement of Financial Position (Edexcel A-Level Business): Flashcards
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Statement of financial position shows
Statement of financial position shows
What business owns, owes & shareholders' equity at one moment
Accounting equation formula
Accounting equation formula
Assets = Capital + Liabilities
Current assets definition
Current assets definition
Resources converted to cash within 12 months
Non-current assets definition
Non-current assets definition
Long-term resources kept for more than 12 months
Current liabilities definition
Current liabilities definition
Debts repaid within 12 months
Non-current liabilities definition
Non-current liabilities definition
Long-term debts payable after more than one year
Net assets calculation
Net assets calculation
Total assets minus total liabilities
Goodwill definition
Goodwill definition
Business value above net assets; reputation & brand
Retained earnings meaning
Retained earnings meaning
Accumulated profit kept, not distributed as dividends
Is retained profit cash?
Is retained profit cash?
No - profit owed to shareholders, not actual cash held