chapter 26 financioal ratio Flashcards
1
Q
what is an asset
A
items owned by a business
2
Q
what is a liability
A
represents money owed by a business
3
Q
Calculate working capital
A
current assets - current liabiites
4
Q
whats capital
A
Money invested into the busiuness and is used to purchase a range of assets including machinery.
5
Q
debenture
A
are loans with fixed intrest rates which are long term
6
Q
depreacitaion
A
is the reduction of the value of an asset over a period of time.
