Assets And Liabilities Flashcards
What are assets?
Assets are things you OWN.
What are liabilities?
Liabilities are things you OWE.
What is a current asset?
A current asset is a short-term asset (less than a year).
What is a non-current asset?
A non-current asset is a long-term asset (more than a year).
Where can you find current assets and liabilities?
You can find them on the Statement of Financial Position (Balance Sheet).
What are examples of current assets?
Examples of current assets include cash, stock (inventory), and debtors.
What are current liabilities?
Current liabilities are short-term obligations (things you owe).
What are examples of current liabilities?
Examples of current liabilities include creditors (trade credit).
What are non-current assets?
Non-current assets are long-term assets (fixed assets).
What are examples of non-current assets?
Examples of non-current assets include land and vehicles.
What are non-current liabilities?
Non-current liabilities are long-term obligations (fixed liabilities).
What are examples of non-current liabilities?
Examples of non-current liabilities include bank loans and mortgages.
