Statement of financial position - a method of recording the value or wealth of a business at a given moment in time.

Assets - what a business owns

Non-current (fixed) Assets - these are the assets that are necessary for a business to function. Examples of these would be buildings or machinery.

Tangible Assets - these are assets which can be seen

Intangible Assets - these are assets that are not visible such as a patent.

Current Assets - describes everything owned by the business which is not a non-current asset. These can include inventory, debt they are owed and cash.

Liabilities - what a business owes

Current Liabilities - debts that have to be paid in less than one year

Non-current Liabilities - debt that has to be paid on a time period of more than one year

Liquidity - the ability to convert assets into cash

Depreciation - an allowance for the wear and tear on the fixed tangible assets.

Retained profit - profit a business has kept rather than distributing to shareholders

Ordinary Shares - shares that show an ownership of the business, the value of these can change depending on the wellbeing of a business.