Interpretation of Financial Statements (Edexcel A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Working capital formula
Working capital formula
Current assets - current liabilities
Solvency meaning
Solvency meaning
Having sufficient liquid assets to pay bills when due
Net assets definition
Net assets definition
Total assets minus total liabilities
What shareholders examine: asset structure
What shareholders examine: asset structure
How business has invested funds raised
What shareholders examine: capital structure
What shareholders examine: capital structure
Different sources of funding (equity vs debt)
Main concern of suppliers and creditors
Main concern of suppliers and creditors
Solvency - ability to repay what is owed
Three components of current assets
Three components of current assets
Inventories, trade receivables, cash & equivalents
Current liabilities typically include
Current liabilities typically include
Trade payables, short-term borrowings, tax liabilities
Why managers use balance sheet
Why managers use balance sheet
Monitor financial position & make strategic decisions
What net assets represent
What net assets represent
Approximate value of the business