3.4 Balance Sheet Flashcards
1
Q
Define Balance Sheet.
A
Shows the value of an organization’s assets and liabilities at a particular point in time.
2
Q
What are assets?
A
Items of value that a business owns (buildings, cash)
3
Q
What are Liabilities?
A
Debts the business owes to others (to banks, suppliers)
4
Q
Define Current Assets.
A
Short-term, liquid assets that are intended to be used up within a year
5
Q
Define Current Liabilities.
A
Short-term debts that need to be repaid within 12 months of the balance sheet date.
6
Q
Define Working Capital.
A
Amount of money available for the day-to-day running of a business. (CA-CL)
7
Q
Formula Net Assets
A
Net Assets = Total Assets - Total Liabilities
8
Q
Define Share Capital.
A
Value of equity funded by shareholders.
