Using GAAP the terms Current Liabilities and Fixed Liabilities (Long-Term Liabilities) the differences are simple
Current Liabilities are liabilities that the company can expect to pay off in a short period of time (one year or less)
While Long-Term Liabilities (fixed) are liabilities that the company will pay over over a longer period of time (more than one year)
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
assests means
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
difference between fixed and variable inputs
Working Capital is the difference between Current Assets and Current Liabilities.Net Worth is Total Assets -Total Liabilities current asset-current Liability=Working Capital working Capital Plus+Fixed Asset-LongTerm Liabilities = Net Worth in another word: (Current Asset+Fixed Asset)-(current Liability+Long Term Liability)= Net Worth Now you got it ?
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
A fixed liabilities are a type of debts, bonds, mortgages and loans that are payable over a term exceeding one year, whereas, current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year......e.g, accounts payable for goods, services or supplies that were purchased for use in the operation of the business and payable within a normal period of time would be current liabilities P.s you know you can simply google this...just saying
Capital Employed = Fixed assets + current assets - current Liabilities
The format of the Balance Sheet is Assets = Liabilities + Equity * Current Assets * Fixed Assets * -------------------- * Total Assets * Current Liabilities * Long Term Liabilities * -------------------------- * Total Liabilities * Equity * Net Income * ---------------------------- * Total Equity * -------------------------- * Total Liabilities and Equity
assests means
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
difference between fixed and variable inputs
What is the difference between fixed asset and inventory
The difference between current assets and fixed assets as follows: Current assets are flexible in nature, easy to encashable and floating money to company. Fixed assets are fixed in nature in other words non-moving assets, not easy to encash, and are regularly depreciated. Classification: Current assets: Cash - at hand and at bank Inventories Sundry Debtors Advance and Deposits Fixed Assets: Land and Building Furniture and Fittings Tools and tackles Plant and Machinery Computer (including assessories and UPS)
Fixed assets and non-current assets are basically the same. Both are defined as assests that are utilized or depreciated by a company over the course of more than a year.