Assets
something that adds value to the business
Tip: AA
Assets Add value
Non-current/fixed assets Current assets
Land and buildings Bank
Vehicles Petty cash
Equipment Cash float
Debtors (customers who bought stock on credit)
Trading stock
Owners equity
The amount of money the shareholders have invested in the business
Types Does it increase or decrease Explanation
owner's equity?
Drawings Decrease The owner is taking money out of the
company for personal use
Capital Increase The owner is contributing personal items
towards the business
(it can be money, vehicles or equipment)
Income Increases Increase the total money available in the
Examples: business
Sales
Current
income
Rent income
Interest
income
Expenses Decreases Decreases the total money available in the
business
, Liabilities
Needs to be paid
Non current liabilities Current liabilities
Long term loan Bank overdraft (bank balance is negative)
Mortgage loan Creditors (the business bought items on credit)
Take out more loans - total liabilities increase
Pay back loans - total liabilities decrease
something that adds value to the business
Tip: AA
Assets Add value
Non-current/fixed assets Current assets
Land and buildings Bank
Vehicles Petty cash
Equipment Cash float
Debtors (customers who bought stock on credit)
Trading stock
Owners equity
The amount of money the shareholders have invested in the business
Types Does it increase or decrease Explanation
owner's equity?
Drawings Decrease The owner is taking money out of the
company for personal use
Capital Increase The owner is contributing personal items
towards the business
(it can be money, vehicles or equipment)
Income Increases Increase the total money available in the
Examples: business
Sales
Current
income
Rent income
Interest
income
Expenses Decreases Decreases the total money available in the
business
, Liabilities
Needs to be paid
Non current liabilities Current liabilities
Long term loan Bank overdraft (bank balance is negative)
Mortgage loan Creditors (the business bought items on credit)
Take out more loans - total liabilities increase
Pay back loans - total liabilities decrease
