business flashcards

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  • Created by: 13childt
  • Created on: 27-02-18 11:46
fixed assets
will last for more than one year
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current assets
will last less than one year
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liabilities
are everything that a company owns and which has a money value
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current liabilities
are bills the firm has to pay soon
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long term liabilities
are debts which are owned to others which will take more than one yea to pay
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net current assets (also known as workng capital) are:
current assets - current liabilities. This is the money a busiess has for day-to-day expenses
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purpose of the balance sheet
Shows how much a business is “worth” (Total net assets). Shows fixed assets which could be used as security against a loan. Shows day-to-day cash available (working capital) and existing level of debt (Current liability).
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Other cards in this set

Card 2

Front

current assets

Back

will last less than one year

Card 3

Front

liabilities

Back

Preview of the front of card 3

Card 4

Front

current liabilities

Back

Preview of the front of card 4

Card 5

Front

long term liabilities

Back

Preview of the front of card 5
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