Business 7115 · O Level · Statement of financial position
Statement of financial position — practice question
AHG is a long-established business because it has been trading for many years. It offers garden products, such as plants and flowers. AHG follows competitive pricing. The business employs 4 managers and 30 other staff. Every one of AHG’s managers makes use of delegation. The Finance Manager is examining AHG’s statement of financial position since she wants to assess its liquidity. Table 1.1 provides an extract.
(a)[2]
Define the term ‘current liabilities’.
(b)[2]
Identify two examples of non-current assets.
(c)[4]
Outline two reasons that liquidity could be important for AHG.
(d)[6]
Explain two advantages to AHG of managers delegating tasks.
(e)[6]
Do you think competitive pricing is the most suitable method for an established business? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Debts a business owes that must be settled within less than one year” …