financial performance of a business

Question 1

fixed assets

Answer 1

longterm assets, kept for many years, they produce revenue for a business

Question 2

current assets

Answer 2

short term assets, kept for under a year

Question 3

current liabilities

Answer 3

short term debts that need to be paid back within a year

Question 4

non-current liabilities

Answer 4

long term debts that will be paid back over many years

Question 5

net assets

Answer 5

the value of assets a business has left after deducting all liabilites

Question 6

total equity

Answer 6

the part of a companys money that belongs to shareholders

Question 7

what is included in fixed assets

Answer 7

vehicles, machienery
(anything that is perminantly in the business)

Question 8

what is included in current assets

Answer 8

cash, inventory
(anything that is not perminant in the business)

Question 9

what is included in current liabilities

Answer 9

overdraft

Question 10

what is included in non-current liabilities

Answer 10

mortgage, bank loan

Question 10

how do you work out net assets

Answer 10

(fixed assets + current assets) - (current liabilities + non-current liabilites)

Question 11

how to work out the total equity

Answer 11

same as net assets

Question 12

equation for working capital

Answer 12

current assets - current liabilities

Question 13

which are in the assets category

Answer 13

cash
inventory
vehicles
machines

Question 14

what are in the liability category

Answer 14

mortgage
overdraft
bank loan

Question 15

formula for net profit margin

Answer 15

netprofit / revenue X 100