Identify three Assets, three Liabilities and three items of Equity. Describe what each item means to you.
Assets
Cash and cash equivalents - Any cash the company has or any investments that can readily be turned into cash.
Receivables - Any money received from the sale of goods in the company's name.
Inventories - Any stock the company has in their possession.
Liabilities
Loans and borrowings - Any money the company owes to banks or other such organizations for loans.
Employee benefits - Any money paid to employees for wages and superannuation.
Current Tax Liability - Any money the company will need to pay in taxation.
Equity
Share capital - The part of the company that comes from it's shares.
Reserves - Any funds the company has set aside for future use.
Accumulated losses - Any losses the company has had over the past years can be used to offset taxation.
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