Business flashcards

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What is an asset?
Everything that a company owns and which has a money value
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What is a liability?
Everything that a company owes and which has a money value
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What is a start up cost?
A short term initial payment, made at the start or prior to a business opening
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What is a running cost?
A long term payment that takes place on a regular basis
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What is a current asset
An asset that will last less than a year
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What is a current liability
Bills that a firm has to pay soon
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Give an example of a current asset
Stock, money in the bank
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Give an example of a current liability
Overdrafts
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Give an example of a start up cost
Initial stock, Computers, a building
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Give an example of a running cost
Electricity bills, wages
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What is a fixed asset?
An asset that will last more than a year
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Give an example of a fixed asset
A bulding, computers
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what is a long-term liabilty?
Debts which are owned to others which will take more than one year to pay
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Give an example of a long-term liabilty
Bank loans
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What is a renewal cost?
costs that are for repairing and renewing equipment
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what is an expansion cost?
costs of installing more production lines, employing more staff
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Other cards in this set

Card 2

Front

What is a liability?

Back

Everything that a company owes and which has a money value

Card 3

Front

What is a start up cost?

Back

Preview of the front of card 3

Card 4

Front

What is a running cost?

Back

Preview of the front of card 4

Card 5

Front

What is a current asset

Back

Preview of the front of card 5
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