FA1 Section - Introduction to business and recording transactions - Assets, liabilities and capital
5 important questions on FA1 Section - Introduction to business and recording transactions - Assets, liabilities and capital
- What are assets?
- What [2] types of assets exist?
- Current assets
- Non-current assets
- What are current assets?
- Give [4] examples
- Inventory
- Money owed by customers
- Money in the bank
- Cash
- What are non-currents assets?
- Give [4] examples
- equipment
- vehicles
- furniture
- buildings
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What is a liability?
Owed by the companyObligation to give an economic resource to someone as a result of something that happened in the past.
- Overdrawn bank balance
- bank loan
- business credit card amount outstanding
- amounts owed to suppliers
- taxation
What is a current liability and what is a non-current liability?
items due within 12 months (fe. overdrawn bank balance)
non-current liability
Money owed to suppliers (fe. long term bank loan)
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