Define the balance sheet

Is the amount of money invested in the business for further production or is the money used to start the business.

Is the excess of gross profit over total expenses.

Is the excess of total expenses over gross profit.

Is the money or goods taken out of the business for private expenses. For example, if a proprietor takes money out for private use.

These are the debts of the business.

Long term liabilities

These are debts whose payment takes more than one year. For example, a loan from a bank.

Current liabilities

These are debts which are paid for within a short period, for example, creditors.

Are the property of the business, is anything that has value in the business and assists the business to run smoothly.

Fixed assets

The properties of the business which stay for a long period of time, for example, building, motor van, premises.

It is purchased for the business and not for sale and increases profit per month.