• 1 Marks

FA – Nov 2012 – L1 – SA – Q3 – Financial Statements Preparation

Determining which item is not part of the statement of financial position.

Which of the following will NOT be a content of the Statement of Financial Position of a company?

A. Non-current assets
B. Finance charge
C. Inventory
D. Payables
E. Loan notes

B. Finance charge

Explanation:
The correct answer is B because a finance charge is an expense that appears in the income statement, not the statement of financial position. The statement of financial position includes assets, liabilities, and equity items such as non-current assets, inventory, payables, and loan notes.

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