Balance Sheets

Question 1

Net cash flow equation

Answer 1

Cash inflow - cash outflow

Question 2

Balance sheet

Answer 2

Snapshot of the financial position of a company at a particular moment of time

Question 3

Shareholders funds

Answer 3

Money shareholders pay to get a share of the business

Question 4

Total assets equation

Answer 4

Long term. Shareholders

liabilities. - funds

Question 5

Current liability

Answer 5

Liability that is constantly changing

Question 6

Assets

Answer 6

Anything a business owns

Question 7

2 types of assets

Answer 7

Fixed assets

Current assets

Question 8

6 stakeholders

Answer 8

Employees
Consumers
Managers
Competitors
Government
Creditors

Question 9

3 current assets

Answer 9

Money
Deters
Stock

Question 10

6 fixed assets

Answer 10

Buildings
Land
Machinery
Vehicles
Brands
Furniture and fitting

Question 11

Intangible assets

Answer 11

Things you can’t touch such as brands

Question 12

Tangible assets

Answer 12

Can touch

Question 13

3 categories of liability

Answer 13

Current liability
Non current liability
Total equity

Question 14

4 current liabilities

Answer 14

Dividend payment
Short term loans
Accounts payable
Overdrafts

Question 15

Long term liability

Answer 15

Depts that are due for repayment by a business after at least one year

Question 16

Shareholder funds equation

Answer 16

Total assets - total liabilities

Examples: ordinary shares and preference shares