Business Finance Key Terms Part2

Question 1

Current assets

Answer 1

Assets that can turn to cash within one year

Question 2

Fixed assets

Answer 2

Assets that take longer than a year to turn into cash

Question 3

Trade receivables

Answer 3

Customers who have been given credit and owe the organisation

Question 4

Liabilities

Answer 4

Something the business ownes

Question 5

Current liabilities

Answer 5

Something a business owes that has to be payed within a year

Question 6

Long term liabilities

Answer 6

Something the business owes that has to be payed back over a longer period of time

Question 7

Overdraft

Answer 7

Short term bank loan that can be expensive

Question 8

Trade payables

Answer 8

The amount of money an organisation owes to their suppliers

The business has received products or services, and now it needs to pay the supplier within a certain period.

Question 9

Working capital

Answer 9

The money in the business on a day to day basis

Question 10

Retained in profit

Answer 10

Money business has kept from before