3.5 Flashcards
income statement
measures the business performance (income & costs) over a given period, usually a year
statement of financial position
snapshot of a business’s assets and its liabilities on a particular day
cash flow statement
shows how the business has generated and disposed of cash and liquid funds during a specific period
examples of non-current liabilities
- long -term borrowing
- other long term liabilities
examples of current liabilities
- trade creditors (payables)
- Short-term borrowing
-accrues & provisions - e.g. tax
examples of non-current assets
- land & buildings
- plant & machinery
- goodwill - value of the business for it containing due to loyal customers
examples of current assets
- cash balances
- trade debtors (receivables)
- inventories ( stocks)
2nd side of the statement of financial position
+ share capital
+ reserves profit
= capital & reserves/ total equity
1st side of the statement of financial position
+ noncurrent assets
+ current assets
- current liabilities
- noncurrent liabilities
= net assets
what are payables
amount of money owed by a business to someone e.g. dividends
total equity
shareholders fund and retained profits
what are inventories
value of all the stock a firm holds
what are receivables
sums owed by customers who have bought items for credit
what are total current assets
sum of all current assets
what are net current liabilities
current assets - current liabilities