Knowledge Is Power

I wish to understand the world Markets in enable me to inspire the local and international market enviroment. they said that Ideas rule the world, with idea and the knowledge of business I can help to improve the economy of my country and the world at large. I also wish to develop a new and applicable business and marketing strategies for the growing young once. For Instance with the knowledge of Balance sheets which are used by businesses to display to their stakeholders where the value of the business is currently located. The balance sheet is set out in a specific way, with different assets and liabilities of the business in different area so that the balance sheet (as the name suggests) balances, it has enable many young generation to gain more knowledge in business world. when considering these 4 main sections to the balance sheet such as 1 Fixed assets

2 Current assets

3 Current liabilities

4 Long term liabilities

you will uunderstand that the world have indeed a master of business.

Fixed assets

These assets are ones owned by the business that cannot readily be turned into cash. For example, the property owned by the business (factories offices etc.) would count as a fixed asset. Other fixed assets could be land owned by the company, Factory equipment, fixtures and fittings of the offices and vehicles owned by the business. In short it is items that are not intended for resale.

Current assets

There are assets that the business owns that can be easily turned into cash. These would include stock currently held, work in progress, finished stock on site and cash held in the bank. Debtors, people that owe money to the business for purchases on credit would also count as a current asset.

Current liabilities

These are the areas in which the business owes money. For example, trade credit (the money that the business owes to suppliers etc) is a current liability. Tax outstanding, Loans that are less than 1 year in duration, dividends to be paid to shareholders and any overdraft at a bank account would also be current liabilities.

Net Current Assets (working capital) can be calculated by subtracting current liabilities form current assets. The most important figure in this area of the balance sheet is Current Assets Employed. This is worked out by the following formula: (Fixed assets + current assets) - current liabilities

This is the figure that will balance with the final section of the balance sheet.

Long term liabilities

These are the areas in which the business owes money in the long term. There are