Statement of Financial Position (Cambridge (CIE) IGCSE Business): Exam Questions

VCG manufactures high-quality briefcases and travel bags. VCG has 50 skilled production workers in its factory. VCG is planning to expand by building a second factory. Different locations are being considered. The Managing Director is reviewing VCG’s financial statements. An extract from its statement of financial position is shown in Table 3.1. Both internal and external stakeholder groups of VCG are interested in this information.

Table 3.1: Extract from VCG’s 2021 statement of financial position ($)

AHG is an established business, as it has been operating for a long time. It sells garden products, including plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees. All AHG’s managers use delegation. The finance manager is analysing AHG’s statement of financial position as she is interested in its liquidity. An extract is shown in Table 1.1.

Table 1.1: Extract from AHG’s statement of financial position at 30 March 2022 ($000)