Chapter 44~The Balance Sheet Flashcards
1
Q
Liabilities?
A
Anything that a business owes e.g creditors + bank loans
2
Q
Fixed assets?
A
Long-term assets that will usually remain in a business for more than a year e.g. Machinery
3
Q
Current assets?
A
Short-term assets that will usually come and go from a business throughout the year e.g. Stock+ debtors
4
Q
Current liabilities?
A
Money owed by the firm that must be paid back within a year e.g creditors + bank overdraft
5
Q
Working capital?
A
The figure we get when we subtract our current liabilities from our current assets
6
Q
Capital employed?
A
Total amount of finance invested in a business
7
Q
Assets?
A
Anything of value that a business owns e.g machinery
