balance sheets

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  • Balance Sheets
    • Current assets
      • debtors
      • items that are used regularly and always replaced
      • money in the current bank account
    • Current liabilities
      • creditors
      • short term loans
      • repayable within the year
    • Working capital
      • simply, the assets that you have that can easily be turned into cash, less than the money that you owe out
      • difference between current assets and current liabilities
      • the actual money that the business has to work with
    • Long term liabilities
      • debts that need to be paid over a number of years
        • mortgages
        • long term loans
        • long term finances
    • Other liabilities
      • share capital - money which shareholders have invested in the business
      • profit and loss account - money kept back from the current year's profile
      • reserves - profit from previous years which has been kept to finance future development
    • Fixed assets
      • items owned by the business
      • last a long time
      • could be sold to increase capital
      • don't change on a daily basis

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