Classified balance sheet and statement of changes in equity for a sole trader

What this note covers

1. What the classified balance sheet shows
2. Classifying assets and liabilities as current or non-current
3. Worked example: building the classified balance sheet
4. The statement of changes in equity and how it links to the balance sheet
5. Using the balance sheet: liquidity ratios
6. How this is examined and what separates a top response

6 sections · 12 key terms & formulas · 6 common mistakes