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Statement 31 Form 2014

2014-2025 Form

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okay so today how to do statements of financial position starting with classifying your assets liabilities and owners Equity uh so this is exercise three and as you can see it starts here on page 22 of your book and then the actual statement of financial position is on page 24 so in your trial balance here I've just highlighted the things that actually go into your statement of financial position um everything that's not highlighted you'll be using in your income statement so let's just go through and classify all the items in here uh so the first thing is accounts receivable and that is an asset and we need to ask oursel whether that's a current asset I.E something we expect to turn to cash in the next one year or if it's a non-current asset which is something we expect to keep and use for a period longer than the year a year in the business so accounts receivable is money that people owe me so I would expect them to pay me within a year

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