EC-1021 Definitions and key vocab Flashcards
1
Q
Assets
A
Valued resources bought to increase a firm’s value or benefit the firm’s operations
with the expectation that it will provide a future benefit
2
Q
Liabilities
A
debts or obligations that arise from past business events
Examples of liabilities include bank loans, mortgages and unpaid bills
3
Q
Equity
A
equity is the value attributable to the owners of a business
book value - value from equation
market value - share price x #shares
4
Q
Non-current/fixed assets
A
items that will be kept for over 12 months
5
Q
Current assets
A
assets that will be used up in 12 months
6
Q
Long term liabilities
A
money owed beyond 12 months
7
Q
Current liabilities
A
money owed that the business will pay within 12 months
