Define the term 'statement of financial position'.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.

1. [1] A record of the assets / everything a business owns
2. [1] A record of the liabilities / everything a business owes
3. [1] A reflection of the worth of the company
4. [1] Shows the total capital / capital employed in a business
5. Decide whether to invest in a business
6. To see the amount of assets a business has
7. To determine the (financial) health / performance of a business
8. To compare with the previous year / to compare with competitors to show whether the business is worth more or less / growing
9. Assess the liquidity of the business using working capital and current ratio
10. To see the amount of debt the business has
11. Help decide how to vote at shareholder meetings e.g. whether to expand