8 - Balance Sheets Flashcards
1
Q
What is meant by a “balance sheet”?
A
Where a business’s liabilities and assets are covered at a certain point in time
2
Q
What 2 types of assets do balance sheets cover?
A
Total current assets
Fixed assets
3
Q
What is an example of a total current asset?
A
Cash or stocks
4
Q
What is an example of a fixed asset?
A
Property
5
Q
What 2 types of liabilities do balance sheets cover?
A
Current liabilities
Long-term liabilities
6
Q
What is an example of a current liability?
A
Loans from creditors
7
Q
What is an example of a long-term liability?
A
Bank loans
8
Q
What is possessed on a balance sheet?
A
A business
9
Q
What money owed to a business does a balance sheet show?
A
Debtors
10
Q
What money a business owes does a balance sheet show?
A
Creditors and shareholders
