Balance Sheets
Business: BTEC Level 3 National Extended Diploma, topic 3.3.1
Balance Sheets
A balance sheet covers a business' liabilities and assets at a certain point in time.
Example of a balance sheet
Information on a balance sheet
- Assets:
- A balance sheet covers total current assets (e.g. stocks or cash).
- It covers fixed assets (e.g. property).
- Liabilities:
- The balance sheet covers current liabilities (e.g. short term loans from creditors).
- It also covers long term liabilities (e.g. loans from the bank).
Purpose of a balance sheet
- The balance sheet shows:
- What a business possesses.
- What the business is owed by debtors.
- What the business owes to creditors and shareholders.
Test yourself on Balance Sheets
What are stocks and cash an example of?