Ch 33 - Key term

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  • Created by: a f.v
  • Created on: 10-12-14 11:10
Assets
Resources used or owned by the business in production
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Balance sheet
A summary at a point in time of business assets, liabilities and capital
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Capital
A source of funds provided by the owners of the business used to buy assets
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Current assets
Assets likely to be changed into cash within a year
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Current liabilities
Debts that have to be repaid within a year
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Drawings
The money taken from the business by the owner for personal use
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Fixed assets
Assets with a life span of more than one year
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Liabilities
The debt of the business provide a source of funds
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Long term liabilities
Debts that are playable after 12 months
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Net assets
The total at the bottom of the first part of the balance sheet. It is the value of all assets less the value of all liabilities
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Net current assets
Current assets minus current liabilities. Also know as working capital
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Other cards in this set

Card 2

Front

A summary at a point in time of business assets, liabilities and capital

Back

Balance sheet

Card 3

Front

A source of funds provided by the owners of the business used to buy assets

Back

Preview of the back of card 3

Card 4

Front

Assets likely to be changed into cash within a year

Back

Preview of the back of card 4

Card 5

Front

Debts that have to be repaid within a year

Back

Preview of the back of card 5
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