BUSINESS UNIT 7 CHAPTER 2

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What are the two forms of financial statements?
Balance sheets + income statments
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What is a balance sheet?
Records the assets (possessions) and liabilities (debts) at a moment in time.
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What stakeholders are interested in a balance sheet?
Shareholders- see if they can generate good returns in future. Suppliers - investigate the short term position of the company (eg cash, liquid assets) and their ability to pay bills. Managers - to Judge performance.
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What are the two types of assets?
Non current assets - retain for a year or more. Eg. Land, property, vehicles. Current assets - converted into cash. Retained for a short period.
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What is another way to classify assets?
Tangible assets - physical existence, like land and equipment. Intangible assets - patents,
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Other cards in this set

Card 2

Front

What is a balance sheet?

Back

Records the assets (possessions) and liabilities (debts) at a moment in time.

Card 3

Front

What stakeholders are interested in a balance sheet?

Back

Preview of the front of card 3

Card 4

Front

What are the two types of assets?

Back

Preview of the front of card 4

Card 5

Front

What is another way to classify assets?

Back

Preview of the front of card 5

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