balance sheets
- Created by: naomicsuter
- Created on: 23-03-16 11:39
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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
- debts that need to be paid over a number of years
- 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
- Current assets
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