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Statement of Financial Position - Coggle Diagram
Statement of Financial Position
Terms
current assets
items owned for a period of less than one year
Current liabillities
items owed for a period of time less than one year
Non current assets
items owned for a period of time more than one year.
Working equity
the ablilty to pay short term debts. calculated by current asssets - current liabilities
Terms
Net assets employed
this is the value of non current assets added to the working equity figure. calculated by non current assets +/- working equity
non current liabillities
Long term debtd of the business. e.g bank loans ,debentures etc
net assets
the overall value or worth of the business. calulated by net assets employed - non current liabilities
Equity and reserves
this shows how the business has been financed, eg the inital investments in the business(equity shares etc), retained profits,etc. It should add up to the exact value of total net assets
Definition
The statement of financial position shows the items a business owns, known as assets, the items they own, known as liabilitiers, and the overall value of the business.