Balance Sheet

Asset

resources owned by a business that are expected to bring future economic benefits

current assets

cash, trade receivables, inventory, intangible assets, prepaid expenses

non-current assets

tangible fixed assets: land, buildings, equipment, cars

intangible fixed assets

the right to use a thing with no physical form like a patent

liabilities

obligations owed by a business to outsiders

current liabilities

overdraft, trade payables, accruals (debt from received benefit ie electricity bill)

non-current liabilities

more than one year: bank loaneq

equities

residual interest on assets of a company once liabilities have been deducted, this shows the owners claim on a company

retained profits

accounting equation

assets = liabilities + equity