Page 27 - Online Notes 2017 Flipbook_Neat
P. 27
Balance Sheet One:
Assets vs. Liabilities
(balances because Share Capital and Retained
Profit are technically a liability – they’re owed
to the shareholders)
Balance Sheet Two:
Net Assets vs. Capital Employed
(ie short-term or ‘current’ liabilities’ netted off
against the short-term or current assets)
How the Profit & Loss Account and the
Cash Flow get you from one Balance
Sheet ‘snapshot’ to the next.
© Virtual Village Pub Limited 2016 25
