1: Class Activity on Balance Sheet Section 1: General Knowledge Questions 1. What is the difference between a fixed asset and a current asset? (2 marks) 2. What is the difference between current liabilities and long-term liabilities? (2 marks) 3. What is a creditor? (1 marks) 4. What is working capital and how is it calculated? (2 marks) 5. What are net assets employed and how is it calculated? (2 marks) 6. What is capital employed? (1 marks) Section 2: Example Balance Sheet Complete the balance sheet for the business for 2019 and 2020. (5 marks) 2019 2020 $ $ $ Fixed Assets Premises 60,000 74,000 Equipment 14,000 24,000 $ Current Assets Stocks 2,000 3,000 5,000 3,000 Debtors Cash at Bank 5,000 2,000 Current Liabilities Overdraft Creditors 3,000 3,000 3,000 3,000 Working Capital Net Assets Financed by: Owners Capital Loan Capital Employed 40,000 40,000 65,000 35,000