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Edexcel IGCSE Business Studies 3.4.2 Purpose of statements of financial position

Practise interpreting statements of financial position by classifying assets and liabilities, calculating changes and explaining their business purpose.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • distinguish current and non-current assets or liabilities from statement entries
  • calculate percentage changes in assets or inventories from year-on-year figures
  • explain how a financial position statement helps assess what a business owns and owes

3.4.2 Statements of financial position question 1

[Maximum number: 1]

Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.

NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm.

NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity.

Define the term non-current liabilities.

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