Fixed Assets
These assets will remain the business and give benefits for more than one year.
Examples:
- Buildings
- Machinery
- Motor Vehicles
- Furniture
- Fittings
- Equipment
Current Assets
These assets will remain the business and give benefits for less than one year. The value will be constantly changing.
Examples:
- Stocks/Inventory
- Debtors
- Cash at Hand
- Cash at Bank
Liabilities = Current Liabilities + Long Term Liabilities
Current Liabilities
These are amounts which have to be paid back within one year.
Examples:
- Short Term Loans
- Bank Overdrafts
- Creditors
Long Term Liabilities
These are amounts which can be paid back after one year.
Examples:
- Long Term Loans