Balance Sheets
Teacher recommended
?- Created by: Aniqa Bushra
- Created on: 02-02-13 20:31
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Balance Sheets
This shows a summary of everything that a business owns (assets) and what it owes (liabilities) in order to calculate the net worth of the business at a set point in time.
The components are: (Part 1)
Fixed assets
Items owned by the business that it will keep for more than one year e.g. premises
Current assets
Items owned by the business that are to be sold or used within one year e.g. stock
Current liabilities
Items that a business owes that are to be paid back within one year e.g. an overdraft
Part 1 of the balance sheet shows where the money is tied up in the business in assets, and where it is owned in liabilities.…
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