Lesson 6.2.3

6.2.3 Statement of Financial Position (Balance Sheet) Quiz: NCFE Business & Enterprise, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

The statement of financial position, or balance sheet, is a snapshot of what a business owns, owes and is funded by on one particular day. This lesson covers current and non-current items, equity, capital employed, working capital, depreciation and the equation that makes both sides match.

Key points

  • A balance sheet is dated 'as at' one day and shows assets and liabilities, unlike statements that cover a period of time.
  • The accounting equation is assets equal liabilities plus capital, because every asset was paid for by lenders or by the owners.
  • Items expected to become cash within twelve months are current; vans, machinery and buildings are non-current assets.
  • Trade payables, overdrafts and tax due soon are current liabilities, whereas a five-year bank loan is a non-current liability.
  • Equity is share capital plus retained profit, and owners' own money paid in appears as capital rather than as a liability.
  • Capital employed is equity plus non-current liabilities, the long-term funding at work in the business.
  • Net book value is an asset's cost minus the depreciation charged so far, and inventory is current because it is bought to be sold.

Key terms

Statement of financial position
Another name for the balance sheet, showing assets, liabilities and equity on a single date.
Current liabilities
Debts that must be paid within twelve months, like trade payables or an overdraft.
Non-current liabilities
Debts that are not due for repayment until more than twelve months ahead.
Equity
The owners' stake: share capital plus profit kept back in the business.
Capital employed
Equity plus non-current liabilities, the total long-term funds in use.
Working capital
Current assets minus current liabilities, also called net current assets.
Depreciation
Spreading the cost of a non-current asset across the years it will be used.
Net book value
An asset's original cost minus the depreciation charged to date.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

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The 20 questions

  1. What two main categories of financial items are shown on a balance sheet?

    • Assets and liabilities
    • Receipts and payments
    • Revenue and expenses
    • Inflows and outflows

  2. What components make up capital employed on a balance sheet?

    • Share capital plus reserves
    • Current assets minus liabilities
    • Equity plus non-current liabilities
    • Total assets minus revenue

  3. Which of these is classified as a non-current asset on a balance sheet?

    • Delivery van
    • Trade receivable
    • Inventory stock
    • Bank cash

  4. Which item is typically listed under current liabilities on a balance sheet?

    • Bank mortgage
    • Trade payables
    • Share capital
    • Delivery van

  5. What does the share capital figure represent on a statement of financial position?

    • Current liabilities
    • Long-term bank loans
    • Retained earnings
    • Money raised from shares

  6. A bank loan repayable in five years appears under which heading?

    • Shareholders' equity
    • Non-current liabilities
    • Non-current assets
    • Current liabilities

  7. What financial term describes the total value of all assets minus all liabilities?

    • Gross profit
    • Net assets
    • Fixed capital
    • Working capital

  8. What specific point in time does a balance sheet report financial position?

    • One particular day
    • Five consecutive years
    • A three-month quarter
    • One financial year

  9. Share capital plus retained profit adds up to which balance sheet total?

    • Shareholders' equity
    • Long-term liabilities
    • Working capital
    • Capital employed

  10. Why do both sides of a balance sheet always equal the same total?

    • Equity equals debt
    • Profit equals cash
    • Revenue equals costs
    • Assets equal claims

  11. Where on a Statement of Financial Position would you find a five-year bank loan?

    • Owners' capital
    • Current liabilities
    • Non-current assets
    • Non-current liabilities

  12. Which section of a Statement of Financial Position lists items the firm expects to turn into cash within twelve months?

    • Current assets
    • Non-current assets
    • Current liabilities
    • Owners' capital

  13. Which of these items is a common example of a current liability?

    • Long-term mortgage
    • Retained profit
    • Factory building
    • Bank overdraft

  14. Ravi puts £20,000 of his own savings into his business. Where will this appear on the Statement of Financial Position?

    • Owners' capital
    • Non-current assets
    • Current liabilities
    • Non-current liabilities

  15. Which item listed below is NOT classed as a non-current asset?

    • Equipment
    • Machinery
    • Property
    • Inventory

  16. Which equation underpins the Statement of Financial Position?

    • Liabilities = Assets + Capital
    • Assets + Liabilities = Capital
    • Assets = Liabilities + Capital
    • Capital = Assets + Liabilities

  17. Which term describes a firm's total long-term funding of equity plus non-current liabilities?

    • Net assets
    • Capital employed
    • Retained profit
    • Working capital

  18. A shop has current assets of £40,000 and current liabilities of £15,000. What is its working capital?

    • £25,000
    • £55,000
    • £15,000
    • £40,000

  19. Where on the Statement of Financial Position are amounts owed to suppliers for credit purchases recorded?

    • Non-current liabilities
    • Share capital
    • Current assets
    • Current liabilities

  20. A van's original cost minus the depreciation charged to date gives which figure in the Statement of Financial Position?

    • Net book value
    • Net realisable value
    • Historical cost
    • Replacement cost

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