Balance Sheet Flashcards
What is a balance sheet
A snapshot of your accounts
What three things are on a balance sheet
Assets (owns), liability (owes) equity (worth) in a true and fair view
What are the main headings on a balance sheet
Non current assets
Current assets
Non current Liabilities
Current Liabilities
Net Assets
Equity
What are net assets
What you OWN minus what you OWE.
Are total assets net assets
No.
What does equity consist of
Shareholder funds and reserves (retained profit)
What at non - current (fixed assets)
Keep for more than 12 months. Most assets. Buildings, computers etc
Can non - current assets be depreciated against tax
Yes
What is the depreciation of non current assets formula
Asset value - residual value / years you are going to keep it
A car you buy for £20k, residual value £4k, years you’re going to keep the far. What is deprecation?
£4k per year
What are current assets
Cash, stock or debtor
What are tangible assets
Almost most. Buildings , cash, stock, cars
What are intangible assets
Good will and brand
What are current liabilities
overdrafts, bank loans less than 12 months, creditors
What are creditors
Billed but you haven’t paid
