Assets & liabilities

• What are assets?

  Things that you own
• What are liabilities?

  Money that you owe to others
• What does the term "current" refer to in financial statements?

  Short-term, less than one year
• What does "non-current" mean?

  Long-term, more than one year
• What is another term for non-current assets?

  Fixed assets
• What is a current asset?

  A short-term thing you own
• What is a current liability?

  A short-term thing you owe
• What are non-current assets?

  Long-term things that you own
• What are non-current liabilities?

  Long-term things that you owe
• What are the key phrases to recognize on the statement of financial position?

  • Current assets: short-term things you own
  • Current liabilities: short-term things you owe
  • Non-current assets: long-term things you own
  • Non-current liabilities: long-term things you owe
• Why is it important to know the definitions of assets and liabilities?

  It could be a definitions question