- 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
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- 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.
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- 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
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- 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.
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