Chapter 1: The Balance Sheet 0.0 / 5 ? AccountingThe Balance SheetASAQA Created by: jessthorburnCreated on: 09-02-16 14:13 Define the term 'Asset' An asset is a resource that is owned by a business 1 of 7 Explain why Non-Current Assets are valued at cost in the b/s Incase the business ever wants to sell one of their assets 2 of 7 Define the term 'Liability' A liability is a resource that is owed by a business 3 of 7 Define 'Trade Recievables' People that owe money to a business, because they are customers that have not paid for the goods/services provided 4 of 7 Define 'Trade Payables' People which the business owes money to, because they have supplied goods/services that the business has received but have not yet paid for 5 of 7 Explain why a balance sheet must always balance Because the money invested in the business must still be in the business somewhere 6 of 7 Explain why Capital is shown as a liability in the b/s Because capital is what the business is owing to the owner 7 of 7
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