Shared Flashcard Set
Cards
Term
| What is meant by the term 'shareholders' funds ? |
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Definition
| Money invested by the shareholders in the business. |
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Term
| 2 examples of Trucker's current assets. |
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Definition
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Term
| Identify and explain 2 reasons why a business might have creditors. |
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Definition
1. To increase sales; credit facility will allow customers to buy more products.
2. Normal business practice; manufacturers normally provide credit facility to customers. It helps customers buy more products. |
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Term
| 3 possible reasons why net assets increase. |
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Definition
1. Fixed assets increased
2. Net assets
3. Liabilities increased |
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Term
| Can the success of a business be assessed just by analysing its balance sheet. |
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Definition
| The profit-and-loss sheet also needs to be analysed because it shows the performance of the business even though the balance sheet shows us how much money was invested. |
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