Content text Chap15_Balance-sheet.pdf
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 14th Edition, © Pearson Education Limited 2018 Slide 15.1 Chapter 15 Balance Sheet Frank Wood’s Business Accounting 1
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 14th Edition, © Pearson Education Limited 2018 Slide 15.2 Learning objectives After finishing this chapter, you will be able to: Explain the meanings of the terms non-current asset, current asset, current liability and non-current liability. Describe the sequence in which each of the five main categories of items appear in the statement of financial position (balance sheet). Draw up a statement of financial position from information given in a trial balance.
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 14th Edition, © Pearson Education Limited 2018 Slide 15.3 Definition The statement of financial position is a list of balances arranged according to whether they are assets, capital or liabilities and so depict the financial situation on a specific date.
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 14th Edition, © Pearson Education Limited 2018 Slide 15.4 The statement of financial position The statement of financial position used to be called the balance sheet. The statement of financial position contains details of assets, liabilities and capital – all those accounts with balances that were not included in the income statement. The statement of financial position is not part of the double entry system.