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Financial Statements (Profit and loss account (Cost of sales (cost of…

- - - - Items that are bought to be used by a business over a long period of time (more than a year).
        
        e.g. property, equipment, vehicles
    - - Items that are defined as short term possessions (owned for less than a year)
        
        e.g. stock, cash in the bank, debtors (people who owe you money)
  - - - Short term debts that are usually owed for less than a year
        
        e.g. utility bills, staff wages, creditors
    - - Amounts that a business owes for longer than a year
        
        e.g. mortgages, bank loans
  - - - This shows how much money the business is likely to have within the next 12 months because it shows what will be left when they sell all of their current assets and then pay their current liabilities