Accounting Language - Statement Of Financial Position Flashcards
What are trade debtors?
Trade debtors are people (or organisations) that owe money to a business, because they are customers who have not yet paid for the goods or services provided.
What are trade creditors ?
Trade creditors are people (or organisations) that the business owes money to, because they have supplied goods and services that the business has received but as yet has not paid for.
What are fixed assets
Fixed assets are assets that will be retained by the business for longer than one year. They include Land and buildings, equipment, machinery, fixtures and fittings and motor vehicles.
What are current assets
Current Assets are cash or assets that will be changed into cash in the near future. They include stock, debtors, bank and cash.
What are long term liabilities
Long Term Liabilities are debts owed by a business which need to be paid after more than one year. They include a bank loan that needs to be paid within five years or a 25 year mortgage on a property.
What is capital
Capital is the term used to describe how much a business is worth. It represents how much the owner(s) has/ have invested in the business.
What is gross profit
Gross profit is sales, minus the cost of those sales.
What are non current assets
Non-current assets are any assets that are not expected to be sold within 12 months
What are current assets?
Current assets are the liquid assets that belong to the business. These assets are either cash or are expected to be converted into cash within 12 months
What are current liabilities
Any money owed by the business that is expected to be repaid within 12 months .
What are non current liabilities
These are long term liabilities of a business. Any amount of money owed for more than one year will appear in this selection of the balance sheet
What are net assets
Net assets is simply the value of all assets minus the value of all liabilities
What is inventory (stock)?
Is the name for goods that have been purchased as part of the operating activities for resale but are not yet sold. They are current assets
What is equity
Is the residual interest in the asset of the business after deducting all its liabilities.
What is equity shareholders?
Are usually used in reference to companies to refer to the shareholders who own ordinary shares
