Unit 3 Finance Flashcards
1
Q
Statement of financial position:
A
Summary of a business’ assets, liabilities & capital
2
Q
Assets:
A
Resources used owned by a business
3
Q
Liabilities:
A
Debts of a business
4
Q
Capital:
A
Finance provided by the owners of the business
5
Q
Non-current assets:
A
Assets that last for more than one year
6
Q
Current assets:
A
Assets that are likely to be changed into cash within a year
7
Q
Liquidity:
A
Ease of speed with which assets can be sold for cash
8
Q
Trade receivables:
A
Amounts of money that are owed to a company by customers
9
Q
Current liabilities:
A
Debts that have to be repaid within a year
10
Q
Net current assets:
A
Current assets - current liabilities (working capital)
11
Q
Non-current liabilities:
A
Debts that are payable after 12 months
12
Q
Net assets:
A
Value of all assets - value of all liabilities
