Balance sheets

Balance sheets

Fixed assets
1. are things that the business owns for over the course of a year or more
2. E.g. cash
  1. land
current assets
1. business owns for less than a year
  1. E.g. material
    1. insurance
current liabilities
working capital
1. working capital pays the day to day running expenses
2. current assets - current liabilities
3. Cash
net assets
1. fixed assets + working capital
2. this shows a business the value of all the assets it owns.
3. should be the same number as capital.
long term liabilities
1. an amount the business pays over a year or more.
2. loans
3. Mortgage
capital
1. these are the assewts the business that can easily turn into cash (it can also include cash in the bank)
2. stock
3. any money own
4. should be the same number as net assets
current liabilities
1. what the business owes in a short amount of time . less than a year.
2. loans
3. debt
Debtors - people that owes money to the business
creditors- people the business owe money to.

Resource summary

	Created by Emstar about 11 years ago