What Is A Balance Sheet?
Public Equity
Public equity refers to your school's net worth, which is the difference between its total assets (what it owns) and liabilities (debts). It represents the value that belongs to the school's shareholders, including the public at large who contribute to the funding of education.
Current Assets
Current assets are assets that can be converted into cash within the next 12 months, such as cash, accounts receivable, and stationery stock. It's important for schools to track their current and non-current assets separately to understand their cash flow and financial position.
Current Liabilities
Current liabilities are debts that are payable within the next 12 months, such as accounts payable and taxes owed.
Working Capital
Working capital is the difference between current assets and current liabilities. It's the amount of money that's available to the board at any given time to operate the school on a day-to-day basis. This is a crucial component of a school's financial position and can help the board make important decisions.
Non-Current Assets
Non-current assets refer to a school's fixed resources, such as library books, plant and equipment, and significant building improvements made by the board. These assets are typically intended for long-term use and cannot be readily converted into cash within the next 12 months, unlike current assets.
Non-Current Liabilities
Non-current liabilities are amounts due to be paid by the board, but not within the next 12 months. For example, the portion of the loan on the photocopier that is not due within the next financial year.
Total Net Assets
Total net assets represent the overall worth of the school in financial terms or its public equity.