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The Balance Sheet

  • Ruth A. Schmidt
  • Helen Wright
Chapter

Abstract

When you have finished working through this chapter you should be able to
  • Give a brief explanation of the balance sheet

  • Define the term asset

  • Distinguish between a fixed asset and a current asset and give examples of both

  • Define and contrast the terms debtor and creditor

  • Define the term liability

  • Explain the difference between a LONG-TERM LIABILITY and a current liability, giving examples of both

  • Explain what is meant by the capital of a business, and appreciate the difference between cash and capital

  • Understand why the two parts of the balance sheet must always balance

  • Draw up a balance sheet in the context of a simple exercise

  • Calculate and explain the impact of simple business transactions on a balance sheet

  • Explain what is meant by DUALITY

Keywords

Balance Sheet Trade Creditor Business Transaction Cash Holding Current Asset 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Ruth A. Schmidt and Helen Wright 1996

Authors and Affiliations

  • Ruth A. Schmidt
  • Helen Wright

There are no affiliations available

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