C.1 Statement of Financial Position (Balance Sheet)

An item that a business owns or money it is owed

• Asset

• Capital

• Cost

• Liability

A debt that a business owes

• Asset

• Capital

• Cost

• Liability

A source of funding for a business

• Asset

• Capital

• Cost

• Liability

Assets that can be converted into cash within one fiscal year

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Debts that a business has that will take them more than one year to pay off.

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Assets that a company uses in its production of goods and services that have a life of more than one year.

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Short-term debts that are due to be paid within one fiscal year.

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Money that comes from within a business, including owners own money, retained profit and money from selling assets.

• Capital assets

• Capital liabilities

• Internal capital

• External capital

External sources of finance refer to money that comes from outside a business, including donations, bank loans and overdrafts, share issue, trade credit and government grants.

• Capital assets

• Capital liabilities

• Internal capital

• External capital

An example of a current asset. It is a company or individual who owes money to a business.

• Creditor

• Debtor

• Overdraft

• Retained profit