Chapter 26: Internal Position

Question 1

Assets

Answer 1

Items owned by the business

Cash in bank , vehicles, property

Question 2

Liabilities

Answer 2

Money owned by a business to suppliers and shareholders

Question 3

Statement of financial position

Answer 3

Another name for balance sheet

Introduced in 2009

Question 4

Consolidated balance sheet

Answer 4

Total balance sheet for a business

Including all its divisions

Question 5

Working capital

Answer 5

Current assets minus current liabilities

Question 6

Capital

Answer 6

Money invested into a business and is used to purchase a range of assets

Including machinery and inventories

Question 7

Mortgages

Answer 7

Long term loans Repaid for up to 50 years

Used to buy purchases

Question 8

Debentures

Answer 8

Loans with fixed interest rate which are long term and may not even have a repayment date

Question 9

Depreciation

Answer 9

Reduction of an asset over a period of time

Question 10

Loss

Answer 10

Where expenditure exceeds its revenue over a specific trading period

Question 11

Ratio analysis

Answer 11

Technique for analysing financial performance

By comparing 1 piece of accounting info with another