Fixed vs current assets

What does a balance sheet show?

• Business assets and liabilities

• Business needs

What are assets?

• What the business owns

• What the business owes

What are liabilities?

• What a business owns

• What a business owes

What are short term assets (used to make products)?

• Fixed assets

• Current assets

What are long term assets (stay in the business for a long time)?

• Fixed assets

• Current assets

What is this an example of?

• Current asset

• Fixed asset

What is this an example of?

• Current asset

• Fixed asset

What are examples of current assets?

• Inventory, cash

• Building, machines

What are examples of fixed assets?

• Inventory, cash

• Building, machines

A balance sheet tells you what a business owns and what a business owes

• True

• False