Question

how can you relate statement of financial position or balance sheet in your daily life?​

Answer 1

The statement of financial position also known as a Balance Sheet represents the Assets, Liabilities and Equity of a business at a point in time

For example:

Assets include cash, stock, property, plant or equipment – anything the business owns. Liabilities are what the business owes to outside parties, eg. suppliers, bank or business loans. Equity is the remaining proportion of the owner’s financial interest in the business after deducting any liabilities from the total assets in the business.