The Balance Sheet

What is the acid test ratio?

• Current assets/liabilities

• Money owed by the business that should be paid within a year

• Similar to the current ratio but excludes stocks from current assets

What are liabilities?

• Money that the business has in stock

• Money owed by the business to banks

• The amount of money owed to shareholders

What are net assets?

• Total assets - total liabilities

• Current assets - current liabilities

• Money left over after your bills are paid

What is working capital?

• Capital available to spend

• Capital you use to pay for fixed assets

• Funds left over to meet day to day expenses

What are curent assets?

• Fixed assets

• Liquid assets

• Variable assets

What is Shareholders Equity?

• The money owed by the business to the shareholders

• The money shareholders pay to the business

• The amount of profit shareholders receive on their shares

Do assets belong to a business?

• Yes

• No

Are inventories held by a Business?

• Yes

• No

Are non-current liabilities

• Money owed by the business for less than a year

• Money owed by the business for more than a year

• Resources that will be used over a period of time

What is Trade or other payables often called

• Credit

• Trade Creditors

• Trade Union