Statement of Financial Position

What is the Statement of Financial Position?

The Statement of Financial Position can also be called the Balance Sheet.

This statement explains the balance of the assets, liabilities and equity ledger accounts as at the reporting period.

This balance sheet is an equation because of the accounting equation relationship.

The following infographic explains how the accounting equation works.

What is a balance Sheet?

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Jan'18

What is a Balance Sheet or Statement of Financial Position?

What is the Balance Sheet or Statement of Financial Position? What is a balance sheet? This statement explains the balance of the assets, liabilities and equity ledger accounts as at the reporting period. As you can see in this example, the balance sheet relationship is represented by the Accounting Equation. Because …

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