balance sheets

balance sheets

1. Current assets - current assets are what the business owns for less than a year this includes products.

   • e.g. products, money

2. Fixed assets – these are what the business owns for over a year.

   • e.g. buildings cars

3. Long term Liabilities – long term liabilities don't have to be paid before a year.

   • e.g. loans, deferred tax, liabilities

4. Working Capital - the capital of a business which is used in its day-to-day trading operations, calculated as the current assets - current liabilities

5. Net Assets - In finance, net assets refers to the value of a company's assets minus its liabilities. For individuals, the concept is the same as net worth. Net assets = Total assets - Total liabilities

   • how much the business is worth (net worth

6. Capital Employed – fixed assets plus current assets minus current liabilities. Capital employed is the value of the assets that contribute to a company’s ability to generate revenue. It is how much they need to use a day.

   • Fixed assets plus current assets minus current liabilities

7. deptors are owed money by the business

8. Owes – money to creditors and the bank.

9. Owes to the investors and owners of the business (they own the profit).