What is Assets
Everything the business owns,had value , can be converted into cash 💰 and benefits the business
What is liabilities
All the money 💰 OWED BY the BUSINESS to other people and businesses
What is owner equity
The owners interest in the business or wat the business owes the business
What’s is capital
Money that the owner puts in to start and run the business
Nam two types of ASSETS A
- Current assets
- Fixed assets
Explain what the two type of assets mean
Current assets -asserts taht value changes within a year and these assets can be converted into cash 💰
Fixed assets - assets that value changes after a year
Give examples of assets in the two groups
FIXED ASSESTS
land and buildings
Vehicles 🚗
Equipment
Machinery
Fixtures and fittings
fixed deposit -an amount is money invested to earn profit
CURRENT ASSETS
•TRADING STOCK / INVENTORY - goods bought for resale
•BANK-all the money 💵/cash of the business
•PETTY CASH💷-small amount is money 💵 kept in a box 📦 to make small purchases
•CASH💰 FLOAT -money kept in a till for the purpose of giving change
•DEBTORS CONTROL -money OWED TO the business by customers
Liabilities fall into two groups
Name these two groups
- Long term -those will be paid only after a year
EXAMPLE :loan from a bank 🏦 - Current liabilities-those will be paid within a year
EXAMPLE:
Creditors control : the money owed by the business to supplies
Bank 🏦 overdraft : money owed to the bank when the business makes payments from which it’s does not have money
Lay buy: the money an individual owes a store when he /she buys an item and pays it off over a few months
What is the meaning of income s
The money that a business receives from selling goods ;your time ,skill or providing a service
Give examples of incomes
Sakes