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Net Worth of a Business

 

The picture below shows a chemist shop.

NET WORTH OF A BUSINESS

Businesses are involved in selling goods and services in order to make profit. After trading for sometime,the owner of a business determines the basic monetary value of the business resources.This helps the owner to assess whether the business is expanding or not.

Assets

Assets are properties owned by the business such as building, furniture, motor vehicles,equipment,machines,stock,debtors,cash in hand and cash at bank.

Classification of assets;

There are two types of assets;

(i) Fixed assets

(ii) Current assets.

The following diagram gives examples of assets.

Click on the buttons to view types and examples of asets.

Examples of assets

Examples of fixed assets

Examples of current assets

Liabilities

This refers to the debts that a business owes outsiders, that is, other businesses or individuals. There are two types of liabilities;

(i) Long term liabilities

(ii) Short term liabilities.

The following diagram illustrates the examples of liabilities.Click on the appropriate plate and examples of liabilities will appear.

Book keeping equation

Book keeping is the process of recording business transactions in the books of a business.The book keeping equation is derived from the fact that all the resources of a business (assets) should be equal to the total sum of the funds or money contributed by the owner [capital] and the amount borrowed [liabilities].

ASSETS=CAPITAL +LIABILITIES.

A= C + L

 


 


 



 Net Worth of a Business 

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 Net Worth of a Business  

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KCSE ONLINE WEBSITE provide KCSE, KCPE and MOCK Past Papers which play a great role in students� performance in the KCSE examination. KCSE mock past papers serves as a good motivation as well as revision material for the major exam the Kenya certificate of secondary education (KCSE). Choosing the KCSE mock examination revision material saves you a lot of time spent during revision for KCSE . Choosing the KCSE mock examination revision material saves you a lot of time spent during revision for KCSE. It is also cost effective

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KCSE ONLINE WEBSITE provide KCSE, KCPE and MOCK Past Papers which play a great role in students� performance in the KCSE examination.

Choosing the KCSE mock examination revision material saves you a lot of time spent during revision for KCSE. It is also cost effective 

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 Net Worth of a Business 




sit amet congue Mock Past Papers, give you an actual exam situation in readiness for your forthcoming national examination from the Kenya National Examination Council KNEC

Choosing the KCSE mock examination revision material saves you a lot of time spent during revision for KCSE. It is also cost effective sapien. 

Choosing the KCSE mock examination revision material saves you a lot of time spent during revision for KCSE. It is also cost effective sapien. 



 Net Worth of a Business

As a supplementary to coursework content our e-library for digitized multimedia CDs while enhance and ensure that you never missed that important concept during the normal class lessons. It is a Do it Yourself Project..

Candidates who would want their papers remarked should request for the same within a month after release of the results. Those who will miss out on their results are advised to check with their respective school heads and not with the examination council

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