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Financial Concepts - Coggle Diagram
Financial Concepts
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Assets
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Current assets: cash+assets that can me converted to cash in a year. eg. debtors, petty cash, bank and cash float. changes from day to day and week to week.
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Equipment: consist of all the furniture, electrical appliances and machinery used in the business to operate effectively and not meant for resale. eg. computers, fridges, printers etc.
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Petty cash: an amt of money kept in a petty cash box, to make small payments for minor expenses of small amnts.
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Liabilities
Current liabilities: must be repaid within 12 months. eg. creditors (the business owes money to them) and bank overdraft.
Non-current liabilities: takes longer than 12 months to be repaid. eg. long term loans and mortgage bonds.