Balance Sheet

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Balance Sheet
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A Balance Sheet

• Is a statement of a firms assets, liabilities and
  share capital on a particular date.

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Assets

• Are things that a firm owns.
• They can be current or fixed.

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Current Assets

• Are owned by the firm.
• They change from year to year.
• Examples include
• Anything receivable due
• Anything payable prepaid
• Bank (money in the bank)
• Cash (money in cash box..)
• Closing Stock
• Debtors (people that owe the firm money)

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Fixed Assets

• Are owned by the firm.
• They last a long time.
• Examples include
• Buildings
• Equipment
• Fixtures Fittings
• Machinery, motor vehicles
• Premises

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Depreciation

• Is loss of value of an asset due to wear and
  tear.
• Example a new Ford Transit van purchased for
  delivering goods costs 21,865 new, but will be
  worth less after one year

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Net Book Value (NBV)

• Fixed Asset Depreciation NBV
• 10,000 - 500 9,500

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Liability

• Is something a business owes another firm.
• It can be current or long term.

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Current Liability

• Is something that a firm owes.
• It is paid within one year.
• Examples include
• Accruals, payable due
• Anything receivable prepaid
• Bank Overdraft
• Creditors (people you owe money to)
• Dividends declared

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Long Term Liabilities

• Is something a firm owes.
• It takes longer than one year to pay off.
• Example Long Term Loan.

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Authorised Share Capital

• Is the maximum number of shares a company can
  sell.

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Issued Share Capital

• Is the actual number of shares a company has sold

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Capital Employed

• Is all the money that is invested in the
  business.
• Includes
• Issued Share Capital
• Long Term Loans
• Reserves

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Working Capital

• Current Assets Current Liabilities.
• CA gt CL Liquid
• You have enough cash to run the business
• CA lt CL Overtrading
• You do not have enough cash to run the business.