Statement of Financial Position Vocabulary PDF

**Statement of financial position** Summary at a point in time of business assets, liabilities and capital (often called the balance sheet) **Assets** Resources used or owned by a business, such as cash, stock, machinery, tools and equipment **Liabilities** Debts of the business, which provide...

**Statement of financial position** Summary at a point in time of business assets, liabilities and capital (often called the balance sheet) **Assets** Resources used or owned by a business, such as cash, stock, machinery, tools and equipment **Liabilities** Debts of the business, which provide a source of funds **Capital** Finance provided by the owners of the business **Non-current assets** Assets that last for more than one year **Current Assets** Assets likely to be changed into cash within a year **Liquidity** Ease or speed with which assets can be sold for cash **Trade receivables** Amounts of money that are owed to a company by its customers **Current Liabilities** Debts that have to be repaid within a year **Net Current Assets** current assets minus current liabilities, also known as working capital **Non-current liabilities** Debts that are payable after 12 months **Net assets** Value of all assets less the value of all liabilities; total at the bottom of the first part of the balance sheet