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.

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2
Q

What are assets?

A

Items of value that a business owns (buildings, cash)

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3
Q

What are Liabilities?

A

Debts the business owes to others (to banks, suppliers)

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4
Q

Define Current Assets.

A

Short-term, liquid assets that are intended to be used up within a year

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5
Q

Define Current Liabilities.

A

Short-term debts that need to be repaid within 12 months of the balance sheet date.

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6
Q

Define Working Capital.

A

Amount of money available for the day-to-day running of a business. (CA-CL)

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7
Q

Formula Net Assets

A

Net Assets = Total Assets - Total Liabilities

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8
Q

Define Share Capital.

A

Value of equity funded by shareholders.

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