Unit 42: Balance sheet 2

Liabilities

Everything a company owes (ex. debts, suppliers, lenders, bondholders, the tax authorities,..)

Current liabilities

Debts that have to be paid within a year (examples current liabilities, zie onder)

Creditors

Money owed to suppliers

Overdrafts

When the company spends more money than it has in its bank accounts

Interest payments

Periodic payments made by borrowers to lenders as compensation for the use of borrowed money. Have to be paid in the short term

Tax payable

Money owed to the tax authorities

Long-term liabilities

Debts that have to be paid further into the future (Ex. Long-term bank loans, bonds)

Long-term bank loans

A loan that is to be paid back over a period of time between three and ten years, and sometimes for as long as twenty years

Bond

An official paper given by the government or a company to show that you have lent them money that they will pay back to you at a particular interest rate

Assets

Everything a company owes

Shareholders’ equity

The total value of a person's or company's assets after their total debt has been subtracted (= Net assets)

Owners’ equity

Is the portion of a company's assets that an owner can claim; it's what's left after subtracting a company's liabilities from its assets.

Shareholder’s funds

Another term for owners' or shareholder's equity.

Dividend

A payment by a company of a part of its profit to the people who own shares (= units of ownership) in the company

Reserves

A supply of something such as money or fuel that you are not using, but that is available if you need it

Retained earning

The part of a company’s profit in a particular period that it decides to keep, rather than paying it to shareholders as a dividend