The Balance Sheet

  • Ruth A. Schmidt
  • Helen Wright


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


Cage Salon 


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Copyright information

© Ruth A. Schmidt and Helen Wright 1996

Authors and Affiliations

  • Ruth A. Schmidt
  • Helen Wright

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