Balance Sheet Flashcards

Flashcards for exam review.

Balance Sheet

A set of final accounts showing a firm’s assets, liabilities, and owners’ equity at a specific time.

Assets

Items of value owned by the business.

Current (short-term) Assets

Assets owned by a business and used within one year (e.g., cash, accounts receivable, inventory).

Non-current (fixed) Assets

Assets owned by the business for more than one year (e.g., land, building, equipment).

Liabilities

Debts owed by the business.

Current (short-term) Liabilities

Short-term debts repaid in less than one year (e.g., tax, interest, accounts payable).

Non-current (long-term) Liabilities

Long-term debts repaid over one year (e.g., bank loan, debentures).

Equity

The amount returned to shareholders if the business liquidates assets and pays off liabilities.

Retained Profit (Reserves)

Accumulated profits kept within the business.

Share Capital

Money invested in the business by the owners.