Business Studies Year 13 revision day 21 - Statement of financial position

On Day 21 of the Year 13 Recap we review the basic aspects of the statement of financial position (balance sheet).

For businesses, the statement of financial position is one of the most important accounts produced over the course of the trading year. This is because it represents a financial snapshot of the wealth position of that business over the year and importantly focuses on three important elements – assets, liabilities, and capital.

This statement crucially informs interested stakeholders about the solvency and liquidity position of the business.

Here Jack reviews the basic aspects of the statement of financial position.