The Balance Sheet

Question 1

Inventories (Stock)

Answer 1

The value of goods stored in the business’ warehouse.

Question 2

Cash

Answer 2

The amount of money the business has in cash or in the bank.

Question 3

Trade Payables (Creditors)

Answer 3

The amount of money owed by the business to its suppliers, arising from the purchase of inventories.

Question 4

Accruals (Accrued Expenses)

Answer 4

The amount of money owed by the business for expenses which the business has incurred, but has not yet paid for.

Question 5

Loan

Answer 5

The amount of money owed by the business to banks or other parties, arising from money borrowings.

Question 6

Prepayments (Prepaid Expenses)

Answer 6

The amount of money paid by the business in advance for expenses it will incur in the future.

Question 7

Layout

Answer 7

ASSETS

Inventories
Trade Receivables
Prepayments
Cash

EQUITY

Owner’s contribution (own profits)

LIABILITIES

N-CL
Loan

C-L
Trade Payables
Accruals