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Balance sheats

Business

TermDefinition
Non-current assets Assets that have a lifespan longer than one year
Current assets Assets that are likely to be turned into cash within a year
Current liability Short term debt paid within a year
Non-current liability Long term debt to be paid back over more than a year
Capital reserves How assets have been financed
Net current assets (working capital) = Current assets - Current liabilities
Liquidation Firms abilities to pay short term liabilities
Net assets= Total assets - Total liabilities (same as total equity)
Created by: user-2055800
 

 



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