Assets - All the things a company owns in order to successfully run its business, such as cash, buildings, land, tools, equipment, vehicles, and furniture., Liabilities - A company's financial obligations; money owed to suppliers, wages payable and loans owning., Capital - The net worth of a business at a specific point in time., Non-current assets (Fixed assets) - These are long-term. Will likely provide benefits to a company for more than one year, such as a real estate, land or major machinery., Current assets - Will be converted to cash within one year. Typically, this could be cash, inventory or accounts receivable., Inventory - The account that tracks all products that will be sold to customers., Owners Capital - The money invested in a company by the shareholders., Depreciation - An accounting method used to track the aging and use of assets., Trade receivables - The total amounts that a company has billed to a customer for goods and services, Prepayments - The payment of an expense before it is due., Gross profit - The profit a company makes after deducting the costs of goods sold from the sales revenue., Net profit - The amount of profit that is left after you subtract your expenses from your gross profit., Balance sheet (Statement of Financial Position) - The financial statement that presents a snapshot of the company’s financial position as of a particular date in time., Current liabilities - Debts or balances that need to be paid within 12 months, Non-current liabilities - Long term finances that are due beyond 12 months., Trade payables - Money owed to suppliers for goods or services already received., Liquidity - The ease with which an asset can be converted into cash without affecting its market price.,
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Statement of Financial Position - Key Terms
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