A2 - Internal Analysis

What is a Balance Sheet and what is it for?
A Balance sheet is a snapshot of a firms finances at a fixed point in time. They show the business' assests, liabilities, the value and the source of its capital. It also shows the business what has been / being done with its money.
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What is the difference between non-current and current when talking about liablities and liablities?
Non-current are the businesses long term assests / liabilities meaning that they are more than one year. Current is under the period of a year which is refered to as short term.
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What is working capital and what is it used for?
Working capital is the amount of cash and available assets that the business has available to pay it's every day debts.
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What is the formula for working capital?
working capital = current assests - current liabilities.
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What is capital expenditure?
This is also refered to as fixed capital, this is the money used to buy non-current assets such as equipment.
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Other cards in this set

Card 2

Front

What is the difference between non-current and current when talking about liablities and liablities?

Back

Non-current are the businesses long term assests / liabilities meaning that they are more than one year. Current is under the period of a year which is refered to as short term.

Card 3

Front

What is working capital and what is it used for?

Back

Preview of the front of card 3

Card 4

Front

What is the formula for working capital?

Back

Preview of the front of card 4

Card 5

Front

What is capital expenditure?

Back

Preview of the front of card 5

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