Y10 Business Studies - C25 Statement of Financial Position

What does the statement of financial position show?

• The profit of a business

• The value of a business’s assets and liabilities

• The number of employees in a business

• The sales revenue of a business

What are non-current assets?

• Items owned for more than one year

• Items owned for less than one year

• Items that are liabilities

• Items that are sold within a year

What is the formula for calculating owner's equity?

• Total liabilities - Total assets

• Total assets - Total liabilities

• Total assets + Total liabilities

• Total assets / Total liabilities

What are current liabilities?

• Long-term debts

• Investments in shares

• Debts that are not owed

• Short-term debts

What does working capital represent?

• Total assets - Total liabilities

• Current assets - Current liabilities

• Owner's equity + Non-current liabilities

• Total liabilities - Current assets

What is share capital?

• Money saved by the business

• Money borrowed by the business

• Money earned from sales

• Money put into the business by shareholders

What can shareholders analyze from the statement of financial position?

• The number of products sold

• The marketing expenses

• If their stake in the business has increased or decreased

• The salaries of employees

What are reserves in a business?

• Money borrowed from banks

• Profit and retained profits from previous years

• Money spent on advertising

• Investments in other companies

What is the definition of liabilities?

• Debts owed by the business

• Items owned by the business

• Assets that are sold

• Investments made by shareholders

What does capital employed equal?

• Total liabilities + Current assets

• Total assets - Owner's equity

• Shareholders’ funds + Non-current liabilities

• Current assets + Current liabilities