Machinery is normally used in business for more than one fiscal year that's why non-current asset of business.
non current assets are like land, building machinery premises etc
current assets are those assets which can be easily converted into cash while fixed asstes can not be easily converted into cash example fixed= land, building, machinery current= debtors , bill receviables
Assets have of two types Current Assets Non-Current/ Fixed Assets Current Assets are those which company utilizes in one fiscal year for example, material, Fixed assets are those assets which company utilizes for more than one fiscal year for example, machinery, plant, equipment etc
All those assets which is usable within one fiscal year is called current assets like cash, inventories etc while all those assets which are usable for more than one fiscal year is called non-current or long term assets like building, machinery etc.
Current assets are those assets which is usable in current fiscal year while total assets includes assets other then current assets like long term assets as formula showTotal assets = current assets + fixed assets
non current assets are like land, building machinery premises etc
current assets are those assets which can be easily converted into cash while fixed asstes can not be easily converted into cash example fixed= land, building, machinery current= debtors , bill receviables
A journal of that type of transactions would be: Debit Machinery Fixed Assets Credit Cash So it would decrease Current Assets and increase Long-Term Assets
Assets have of two types Current Assets Non-Current/ Fixed Assets Current Assets are those which company utilizes in one fiscal year for example, material, Fixed assets are those assets which company utilizes for more than one fiscal year for example, machinery, plant, equipment etc
All those assets which is usable within one fiscal year is called current assets like cash, inventories etc while all those assets which are usable for more than one fiscal year is called non-current or long term assets like building, machinery etc.
Current Assets:These are those assets which are utilizable by the company in one fiscal/accounting yearFixed Assets:These are those assets which are utilized by the company for more then one fiscal/accounting year For example: Machinery, Land etc.
Financial assets are tangible and intangible assets. while tangible assets are include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. ... Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brand recognition, are all examples of intangible assets.
Formula for net current assets :net current assets = current assets - current liabilities
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)
Current assets are those assets which is usable in current fiscal year while total assets includes assets other then current assets like long term assets as formula showTotal assets = current assets + fixed assets
since noncurrent assets are fixed assets and current asset are business properties tend to be used within a years period example machinery a business can put their properties on sale example they can rent them out as hire purchasing from them the business gets money
fixed asset - property, land, machinery, vehicles, etc Current asset- stock, recievables, petty cash.