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F1 – Statement of Financial Position

Forums › Ask CIMA Tutor Forums › Ask CIMA F1 Tutor Forums › F1 – Statement of Financial Position

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 1, 2019 at 1:44 pm #518195
    moonman
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Hello.

    Please may you assist in clarifying a query I have with the BPP Exam Practice Kit.

    The question gives a trial balance for a company and requires you to calculate the current assets.

    In the answer, the total includes inventory and receivables but not cash and cash equivalents. Am I mistaken in thinking that cash and cash equivalents would make up a part of current assets?

    Thank you

    June 4, 2019 at 7:55 pm #518937
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7159
    • ☆☆☆☆☆

    Hi,

    It could be that the company’s bank balance is overdrawn, in which case it will be part of current liabilities.

    Thanks

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