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Jc Balance Sheet
Key Terms
Question | Answer |
---|---|
Current assets | These are short-term assets that will come to and go from the business throughout the year, e.g. stock. |
Current liabilities | These consist of money owed by the firm that must be paid back within a year, e.g. an electricity bill. |
Total net assets | Fixed assets + working capital |
Reserves | The amount of profit that is retained in the business on a particular date. |
Debtors | People who owe the business money |
Creditors | People the business owes money to |
Authorised share capital | The amount of share capital the company can issue. |
Issued share capital | The amount of share capital that has already been issued to the shareholders. |
Long term liabilities | Money that is owed by the firm over a longer period. e.g. a 10 year term loan. |
Capital employed | This is the total of the bottom part of the balance sheet: Share capital + reserves + long term liability |