Structure of Statement of Financial Position

[KaustavSen]

While preparing the Statement of Financial Position, is it necessary to write the Sub-Headings in the same order as given on page 4 of Chapter 8: The Main Accounts?

For example, the sub-headings under the Current Assets heading are given as:
1. Inventories
2. Trade Receivables
3. Other Current Assets
4. Cash

Will marks be deducted if I give the sub-headings as:
1. Inventories
2. Trade Receivables
3. Cash
4. Other Current Assets

 

[Stuart Underwood]

Current assets

Hi KaustavSen

Whether you'd be deducted marks for writing them in the "wrong" order, only the Examiners will know that for sure ...

... I would personally think it unlikely ...

... but it's probably safest/most logical to write them in the order of increasing liquidity.

1. Inventories <------ most illiquid: need to sell the stock AND be paid
2. Trade Receivables <------ just need to be paid
3. Other Current Assets <------ just need to be paid
4. Cash <------ most liquid: already cash.

Hope that helps

Best wishes
Stuart

Stuart Underwood
ActEd Tutor

 

[KaustavSen]

Your explanation was really helpful. Thank you.