Statement Of Financial Position Flashcards
1
Q
Assets
A
What they own
2
Q
Non current assets (fixed assets)
A
Assets necessary to enable business to function. Eg building, equipment.
3
Q
Current assets
A
Assets that can be converted into cash - stock, cash, debtors
4
Q
Stock
A
Least liquid current asset
3 types:
1) finished
2) work in progress (least liquid)
3) raw materials
5
Q
Trade and other receivables (debtors)
A
Anything owed to business
6
Q
Liabilities
A
Things they owe
7
Q
Current liabilities
A
Describe what is owed and due for payment within a year
8
Q
Non current assets
A
What is owed after a year—> long term
9
Q
Trade and other payables (creditors)
A
Who the business owes (eg suppliers)
10
Q
Net assets
A
Net current assets + non current assets
