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2007-08-06 21:36:47 · 8 answers · asked by Anonymous in Society & Culture Languages

8 answers

Welcome dear commerce student. Your lecturer must have told you in accountancy class that `assets' are classified as `Fixed Assets' and ` current assets'. Fixed assets are used in generation of revenue for the organisation. Examples - Land, Building, plant and machinery etc. They are also called tangible assets. You can touch and see them. The second group of assets are known as current assets. Liquidity of current asset is easy, simple and fast. in other words you can convert current assets to cash fast. Current assets form part of the working capital of the organisation and to arrive at the working capital you need to subtract current liabilities from total current assets. Examples of current assets are: Cash, Bank balance, stock in trade, Sundry Debtors, work in progress etc. Current liabilities are your creditors balance, bank overdraft, borrowings etc.
It is good that you get these points clarified in the beginning so that you have a good foundation before you progress further in learning accountancy. Best of luck.

2007-08-06 21:51:38 · answer #1 · answered by villager 3 · 3 0

Is Land A Current Asset

2016-10-07 04:17:06 · answer #2 · answered by ? 4 · 0 0

Land,Building,immovable properties - Fixed Assets - Appreciation & Deprecciation applicable based on the Market trend. Whereas Loans given,Advances Paid,Customers Outstandigns (Debtors) are called Current Assets. These are all not in fixed in nature . For example Loan given to a 3rd Party or Employees can be recoverable in short period. Hence the Balance changes. So also the outstandings if the customers pay it off the balance reduces. Hence these are current assets.

2007-08-07 00:13:57 · answer #3 · answered by narasimhan v 4 · 2 0

Current Assets are those assets which, as the name suggests, are used for the current period, that is they pertain to the current financial year. The other type of assets are fixed and intangible assets. Fixed Assets, as the name suggests, are those assets which remain fixed in the business, that is Land, Biuilding, Plant and Machinery, Furnitures and Fixtures and Capital Work in Progress are examples of Fixed Assets. Intangible Assets are those Assets, which are not tangible, that is we cannot see them. Examples of intangible assets are Goodwill, Patents, Trademarks, Copyrights. Current Assets include Cash in hand and at Bank, Sundry Debtors, Loans And Advances and Prepaid Expenses. Out of the Current Assets, Cash-in-hand is the most liquid asset, followed by cash at bank, then comes debtors and prepaid expenses.

2007-08-06 22:05:13 · answer #4 · answered by king 4 · 2 0

Current assets are all assets owned by someone or an entity which can be converted into liquid cash without significant cost in a short time at least 12 months since its possession for meeting his/her or entity's short term obligation or current liabilities,These assets among other are cash on hand,cash in bank,trade receivables,inventories,short term investments, etc.

2007-08-06 22:21:15 · answer #5 · answered by ? 7 · 2 0

Current asset is an asset which can be converted into liquid cash with in one year.
Ex: Cash in Hand,Convertable Security,Deposits which can be converted into cash with in one year

2007-08-06 21:43:01 · answer #6 · answered by sudhindra k 2 · 2 0

machineries are fixed assets, raw material is current asset. assets which are used for day-to-day production are current assets. machineries which are fixed and permanent are fixed assets.

2007-08-08 21:06:26 · answer #7 · answered by sristi 5 · 0 0

basically it is everything you own which can be put into value. your house, youre car, your tv, your bankaccount. your current asset would be how much money youd be worth if youd sell EVERYTHING you own.

2007-08-06 22:08:27 · answer #8 · answered by mrzwink 7 · 0 0

What you own at the moment

2007-08-06 21:44:45 · answer #9 · answered by Coxy 2 · 0 0

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