*Assets in the balance sheet are divided into Fixed Assets and Current Assets. Fixed Assets Fixed assets must be used by the business. So you would not normally expect the family home on the balance sheet. The asset must also have a “life” of more than year, (well, strictly speaking, more than one accounting period, which may [read more]
Liabilities*A liability is a debt that a business or person owes. (A creditor is a liability, because they are owed money) A current liability is a debt that must be paid within a fairly short period of time. In balance sheet terms, this is generally accepted as a debt that is repayable within a year. [read more] |
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Capital*Capital is the amount of money that the owners have put into the business. Capital is also referred to as a liability. This is because capital is the debt that the business owes to its owners. In the case of a limited company, the capital will be in the form of shares. When a limited company [read more] |
Balance Sheet*A balance sheet is divided into two halves, with either: the capital and liabilities in one half and assets in the other; or capital in one half and net assets in the other. The balance sheet may be presented horizontally or vertically. In either case, both halves must add up to the same total. However, a balance sheet [read more] |
Bookkeepers*I have already posted (4 April 2007) about the difference between bookkeeping and accounting. Bookkeeping is part of accountancy but there is an Insitute of Certified Bookkeepers, to which appropriately qualified bookkeepers can belong. (Membership is by examination or by exemption). Bookkeepers tend to maintain the accounting records of a business throughout the year and handover [read more] |
Accounting Technicians*The two main accounting technician qualifications in the UK are the Association of Accounting Technicians (AAT) and the Certified Accounting Technician (CAT) scheme provided by ACCA. Both have a full syllabus and practical experience requirements and both are qualifications in their own right. However, they also offer exemptions from some of the CCAB exams and/or a fast track to becoming [read more] |
