Google
 

Monday, May 11, 2009

Accounting Basics: Current Assets

We've previously discussed what Assets are. In an unclassified balance sheet where you only have 3 major classifiations (assets, liabilities and owners equity) that would be in the story. A much more useful report is the Classified Balance Sheet. Here, the three major categories are subdivided to provide readers of the financial statements with much more detailed information. The first such subdivision under assets is Current Assets.

Current Assets are defined as those assets which will either be converted into cash or otherwise 'used up' by the business in a relatively short period of time (generally one year or less). On the balance sheet, they are generally presented in order of liquidity; thus cash is generally listed first.

Other examples of current assets include accounts receivable, notes receivable (which often have a current and a non-current portion) and prepaid expenses. These will be examined in future entries.

2 comments:

alfred saf said...

To go cave exploring may be a amusing way to get a touch greater sun as well as an excellent exercising. there are many little islands, Testo Max coves and caves to discover with a canoe off phuket's east coast and water is tranquil and turquoise blue.the island offers many suggests additionally like monkey shows and snake suggests. many bus tours will take you to the caves in phang ngn bay. http://musclegainfast.com/testo-max/

Mose Cren said...

You may discover getting out of bed is straightforward, without exerting stress to your lower again. this option of adjustable bed bed IRON BULL EDGE also lets in gravity to assist your heart muscle whilst making respiration less difficult and less congested that's a dream come proper for sleep apnea sufferers.using an adjustable bed bed can also improve stream. http://purenitrateadvice.com/iron-bull-edge/