Balance Sheet Flashcards
1
Q
Assets
A
What a business owns
2
Q
Liabilities
A
What a business Owes
3
Q
current
A
Less than a year
4
Q
Longterm / fixed
A
More than one year
5
Q
Debtors
A
OWE money to the business
6
Q
Creditors ( or suppliers )
A
Are OWED money
7
Q
Fixed assets examples.
A
Land or building
machinery
Vehicles
8
Q
Current assets examples
A
Cash
Stock
Debtors
9
Q
Net Current Assets
A
Current assest- current liabilities
10
Q
working Capital
A
Current assets- current liabilities
11
Q
What does ROCE
A
Return on capital employed
12
Q
ROCE calculation
A
Profit before Tax/ total equity + non current liabilities X100
13
Q
Gearing calculation
A
Long term liabilities / capital employed x 100
14
Q
Current Ratio
A
Current assets/ current liabilities
15
Q
Acid Test
A
Current assets- Stock / current Liabilities
