Balance Sheets Terms & Formulas - IB Bus Man SL 1

fixed/non-current assets

tangible (buildings, machinery, etc), intangible (brands, patents, etc) and investment assets

current assets

cash, debtors and stock

current liabilities

debts to be paid within 1 year of balance sheet date: creditors, taxes, dividends, bank overdrafts

long term liabilities

debts to be paid after 1 year: mortages and bank loans

total liabilities formula

current liabilities + long term/non-current liabilities

total assets formula

fixed/non-current assets + current assets

net assets formula

total assets - total liabilities

equity/capital reserves

share capital + retained profit

working capital formula

current assets - current liabilities

net assets

the value of all the assets a business owns. equal to equity

equity formula

share capital + retained profit

working capital/liquidity

the money a business has available to pay its day to day operations