Assets/liabilities

Question 1

Assets

Answer 1

Something that are business owns

Question 2

Types of assets are

Answer 2

Current assets and fixed assets

Question 3

Current assets

Answer 3

Something that will be used up in a short period of time (stocks(inventory), cash, money owed by custoemrs)

Question 4

Fixed assets

Answer 4

Something that will last for a longer period of time

Computer equipment, business premises, machinery, vehicles

Question 5

Liabilities

Answer 5

Something a business owes

Question 6

Types of liabilities

Answer 6

Current liabilities and long term liabilities

Question 7

Current liabilities

Answer 7

Something that must be paid within 1year

Money owed to suppliers for stock (creditors), bank overdraft

Question 8

Long term liabilities

Answer 8

Something that can be repaid over a longer period of time, over a year
(Money invested by owners, bank loans, mortgage)

Question 9

Total liabilities

Answer 9

Value of current liability + value of long term liabilities