Balance sheet

• What are fixed assets also known as?

  Non-current assets
• What is the lifespan of fixed assets?

  More than one year
• What are the most common types of fixed assets?

  Buildings, equipment, and machinery
• What are current assets?

  Assets likely to be turned into cash within one year
• What may stock include?

  Raw materials, components, and finished goods
• What are debtors in the context of current assets?

  The value of goods sold but not yet paid for
• What are current liabilities?

  Short-term debts of a business
• When must current liabilities be paid?

  Within one year
• What does creditors refer to?

  The money a business owes for purchased products
• What is the formula for net current assets?

  Net Current Assets = Current Assets - Current Liabilities
• Why is the figure for net current assets important?

  If current liabilities exceed current assets, debts may be hard to pay
• What does total assets minus current liabilities represent?

  The total value of the business's assets minus current liabilities