Acca financial Accounting (FA) Study Text ac ca (FA)

Note: economic resource – A right that has the potential to produce 

economic benefits

 (para 4.4). 

Categorisation of assets, liabilities and equity in the financial statements 

There are some additional principles with regard to the classification of assets 

and liabilities that relate to the length of time they will be employed in the 

business. 

 

 

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Chapter 1 

KAPLAN PUBLISHING

 

15 

 

 

 

 

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Introduction to financial reporting 

16

 

KAPLAN PUBLISHING

 

 

Test your understanding 2 

 

Classify the following items into current and non-current assets and 

liabilities: 

•

 

land and buildings 

•

 receivables 

•

 cash 

•

 

loan repayable in two years’ time 

•

 payables 

•

 delivery 

van. 

7 

The components of a set of financial statements 

A set of financial statements comprise: 

•