UNIT 1A A LOT TO LEARN PERSONAL BALANCE SHEETS

Unit 1A – PERSONAL BALANCE SHEETS A LOT TO LEARN We all possess things of value, some of which we keep for years. All of these things are known as ASSETS. bicycle music system clothes camera savings books debtors people who owe us money cash

A LOT TO LEARN Unit 1A – PERSONAL BALANCE SHEETS Assets we have for years are called FIXED ASSETS Assets we have short-term are called CURRENT ASSETS

A LOT TO LEARN Unit 1A – PERSONAL BALANCE SHEETS We often owe people money that we borrowed from them. These people all called CREDITORS. Creditors are not things of value to us, like assets are. Creditors are known as LIABILITIES. Creditors are people or organisations we owe money to.

A LOT TO LEARN Unit 1A – PERSONAL BALANCE SHEETS All our assets less all our liabilities tells us what we are worth. This calculation is carried out in the BALANCE SHEET. = assets less liabilities net worth

A LOT TO LEARN Unit 1A – PERSONAL BALANCE SHEETS Key Words Open up your key words jotter now and copy these down. assets – things of value eg bicycle, clothes, music system liabilities – money we owe to a person or business net worth – assets less liabilities balance sheet – a statement in which we calculate net worth debtor – someone who owes us money creditor – someone we owe money to eg mum for housekeeping working capital – how much money can be raised quickly