WorksheetsFinancial Terms in Construction
Total questions: 10
Worksheet time: 5mins
Assets are most simply what a construction business has. They’re resources that hold value for a construction business because they can lead to cash. Types can include current assets, fixed assets and other long-term assets.
Current assets are assets that can be easily converted cash within 12 months.
Fixed assets are resources that a construction business owns and uses for more than one year, such as buildings and machinery.
True
False
Current assets are assets that are expected to be converted into cash or used up within a period longer than one year.
True
False
Liabilities represent what a construction business owes to others, including loans and unpaid bills.
False
True
Leverage are most simply what a construction business owes.
Financial statements are the official record of a construction company’s financial activities and position.
Current liabilities are obligations that a construction business is expected to settle within one year.
True
False
Working capital is calculated as the difference between a construction company's current assets and current liabilities.
True
False
Depreciation refers to the reduction in value of fixed assets over time due to wear and tear.
False
True
