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| Question | Answer |
| 1. Balance sheet | Statement of financial position |
| 2. Non- Current assets | Assets which are kept in the business for more than 1 year e.g. van, fixtures, Depreciation ADD THEM ALL |
| 3. Current Assets | Assets which are kept in the business for less than 1 year |
| 4. The order of current assets... I TURN PINK COLD | Inventory Trade Receivables Prepayables Cash ADD THEM ALL |
| 5. Less Current liabilities | Liabilities which have to re-paid within a year |
| 6. The order of Current liabilities... TIM's ARMPIT BURPS | Trade payables Accurals bank overdraft ADD THEM ALL (total goes in middle column) |
| 7. Net Current assets | CURRENT ASSETS - CURRENT LIABILITIES THEN ADD NON- Current assets |
| 8. Less Non- Current liabilities | Liabilities which have to be repaid in more than 1 year e.g. LOAN do net current assets minus non- current liabilities to get net assets |
| 9. Financed by Capital | Opening capital Add Profit for the year (FROM THE INCOME STATEMENT) |
| 10. Less Drawings | Total should equal Net assets |
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