HBM - Statement of Financial Position (Part 1)

What can you remember from last lesson?

Categorize

Options (12)

surplus

deficit

opening balance

closing balance

total receipts

cash available

expenses

gross profit

profit for the year

cost of sales

opening inventory

closing inventory

Organise these options into the right categories

Cash Budget

Income Statement

Multiple Choice

Cash budgets...

• is a document produced to help a business manage their cash flow.

• shows the business' financial performance over a given time period e.g. one year.

• shows the value of a business on a particular date.

• shows the overall profit or loss made in the business.

• is a legal requirement for all limited companies to prepare.

Multiple Choice

Income Statements...

• is a document produced to help a business manage their cash flow.

• shows the business' financial performance over a given time period e.g. one year.

• shows theo value of a business on a particular date.

• can be used to show the value of all current assets, non-current assets, liabilities and non-current liabilities.

HBM - Statement of Financial Position

Part 1

Multiple Choice

A statement of financial position shows:

• the overall value of the business

• the profits and losses of the business

• the predicted inflow and outflows of a business.

Multiple Select

Which of the following is true of a Statement of Financial Position? (choose all that apply)

• informs decision-making

• shows the profit from buying and selling

• shows where a business may have surpluses

• can show if a business needs to take out a loan

• shows the items the business owns and owe

Dropdown

A statement of ​

Select answer

can be used to show the value of all ​

Select answer

assets, non-current assets, liabilities and non-current​

Select answer

assets - what the business ​

Select answer

liabilities - what the business ​

Select answer

Fill in the Blanks

An asset is something ?? by the business.

(5 letters)

Fill in the Blanks

A liability is something ?? by the business.

(4 letters)

Multiple Choice

Inventory is an example of a...

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Items owned for more than one year.

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Trade receivables is an example of a...

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Bank overdraft is an example of a...

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Items owed for less than one year.

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Vehicles are an example of a...

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Trade payables is an example of a...

• Non-current asset

• Current asset

• Current liability

Multiple Choice

Items owned for less than one year.

• Non-current asset

• Current asset

• Current liability

Multiple Select

Working equity shows: (choose all that apply)

• ability to pay short-term debts

• current assets - current liabilities

• ability to pay long-term debts

• current liabilities - current assets

Net Assets Employed

The value of non-current assets added to working equity.

non-current assets +/- working equity

Multiple Choice

Net assets employed =

• non-current assets + working equity

• sales revenue - cost of sales

• current assets - current liabilities

• opening balance + receipts - payments

Multiple Select

Non-current liabilities:

(choose all the correct answers)

• Long-term debts of the business

• Examples include bank loan

• Examples include bank overdraft

• Short-term debts of the business

• show the profit for the year

Categorize

Options (7)

premises

vehicles

inventory

cash at bank

trade payables

bank overdraft

bank loan

Organise these options into the right categories

Non current assets

Current assets

Current liabilities

Non-current liabilities

Multiple Choice

Net assets show the overall value/worth of a business.

• True

• False

Multiple Choice

Net assets is calculated by:

Net assets employed - non-current assets.

• True

• False

Fill in the Blanks

Equity & Reserves shows how the business has been ??

eg, intital investments, retained profits

(8 letters)

Multiple Choice

What did I just ask you to remember...???!!

• Net assets = Equity & reserves

• Cash budgets show predicted figures

• Current assets = current liabilities

• Cost sales = opening inventory + purchases - closing inventory