finance 0.0 / 5 ? Business StudiesFinanceGCSEAQA Created by: amandacygalCreated on: 30-01-15 09:59 fixed assets premises, machinery, vehicles the figure is what theyre worth on the balance sheet- they depreciate with time but that gets sorted with profit and loss account 1 of 4 current assets last only a few months listed in increasing order of liquidity (liquidity tells you how easy an asset is turnes into money) stock is the least liquid: includes raw materials and finished products which the firm have spent money on but are still needed to be sold debtors show the value of products sold that have not yet been paid for by customers (usually on credit) cash is the most liquid- money hasnt been spent on anything yet. 2 of 4 current liabilities bills the firm has to pay quick payments needed to be masde within one year of the date on a balance sheet creditors-money the firm owes to its suppliers. money that doesnt belong to the firm as they have to pay it out soon: you take it away from current asset figures 3 of 4 net assets current-current liabilities = net current assets this is the working capital net current assets+fixed assets=net assets; this is how much the firm would make if it sold all of its assets. 4 of 4
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