GlossariesGCSE GlossariesGCSE Business GlossaryStatement Of Financial Position

Statement Of Financial Position - GCSE Business Definition

Reviewed by: Steve Vorster

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A Statement of Financial Position, or a balance sheet, is a financial document providing a snapshot of a company's assets, liabilities, and equity at one point in time. It offers a clear picture of what the business owns and owes. For GCSE Business students, understanding this document helps to analyse a company's financial health and stability.

Assets might include cash, inventory, and equipment, while liabilities cover debts and obligations. The difference between the total assets and total liabilities represents the owner's equity, which indicates the net worth of the business.

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Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

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