What this practice covers
These questions are drawn from past CIE 0264 Business papers and filtered to statement of financial position. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising practice questions →
What examiners see students get wrong here
These are the errors that cost marks on statement of financial position, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Calling inventory a non-current asset. It is bought to be sold within the year, so it is current.
- Putting a bank loan and an overdraft in the same group. The loan is non-current, the overdraft is current.
- Mixing up trade receivables (owed to the business) with trade payables (owed by it).
- Adding current liabilities into total assets, or adding assets and liabilities together to get a total.
- Calculating working capital from total assets and total liabilities. It uses the current rows only.
- Including current liabilities in capital employed.
- Saying the statement covers a year. It shows one day.
- Treating a large total assets figure as proof the business is doing well, without looking at what it owes.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Statement of financial position revision notes.