Business: Definitions

Question 1

Current Asset

Answer 1

Will be used up within the next current accounting period/year (within 12 months)

Question 2

Non-Current Asset

Answer 2

Will provide benefits beyond the next accounting period/year (they will last longer than 12 months)

Question 3

Non-Current Assets;

Investment Assets

Answer 3

Money invested long term which will provide future income

Question 4

Non-Current Assets;

Property, Plant & Equipment

Answer 4

Assets with long-term use in the business, which will provide income for the business for more than one year

Question 5

Non-Current Assets;

Intangible Assets

Answer 5

Long-term assets which will provide future economic benefits but which are not physical

Question 6

Current Liabilities

Answer 6

Will be repaid (used up) within the next accounting period/year (within 12 months)

Question 7

Non-Current Liabilities

Answer 7

Will not be repaid (used up) within the next accounting period/year