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  • Created by: ShellyN
  • Created on: 27-02-16 18:38

What are assets?

What the business OWNS.

A piece of property or equipment purchased exclusively or primarily for business use.

Business assets span many categories, such as vehicles, real estate, computers, office furniture and other fixtures.

Much of the start-up capital for many businesses goes toward the purchase of this type of asset.

Business Assets are listed on the firm's balance sheet as items of ownership.

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Revenue and Current liabilities

Revenue is the money coming into a business.

The main revenue will come from the sale of the firm's producs or services.

Current liabilities is the amount of money owed to trade creditors, bank overdrafts and divident payment.

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Net profit, Gross profit and Start up costs

Net profit is the total expenses subtracted from the gross profit. It is used to; PAY SHAREHOLDERS, REINVEST IN THE BUSINESS.

Gross profit is the difference between sales and cost of sales.

Start up cost is the cost linked to new activities when the business is starting up. This includes things like computers, tills or cabinets.

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Fixed assets and Current assets

Fixed assets include the value of land, premises, equipment, vehicles and investments.

Current assets are the value of stock, debtors, bank and cash held within the business.

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