Financial position Flashcards
1
Q
What is a non current/fixed asset?
A
Something of value that the business owns for over a year
2
Q
What is a current asset?
A
Something of value that the business owns for less than a year and can be easily turned into cash(or is cash)
3
Q
What are 3 types of current assets?
A
-Recievables
-Cash
-Stock
4
Q
What is a liability?
A
A liability is an amount owed by a business to others
5
Q
What is a current liability?
A
A current liability is an amount owned by a business to others that needs repaying within a year
6
Q
What are net current assets?
A
Represents money available for day-to-day operations
7
Q
What is a non current liability?
A
A non current liability is a debt that a business will pay back over MANY years!
