Financial Statements: Statements of Financial Position

The statement of financial position (formerly called the balance sheet) is the second key financial statement in GCSE Business Studies. It provides a snapshot of what a business owns, what it owes, and the value of the owner's investment at a specific point in time.

---

What Is a Statement of Financial Position?

A statement of financial position (also called a balance sheet) is a financial document that shows:

• What the business owns (assets)
• What the business owes (liabilities)
• The value of the owner's investment (equity/capital)

It is a snapshot of the business's financial position at a single point in time (unlike an income statement, which covers a period).

---

Key Terms