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Q: The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as?
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Continue Learning about Accounting

What type of account is the supplies account?

Supplies (sometimes also referred to as "inventory", depending on your industry) is an asset, or more specifically, if you are using a classified balance sheet format, current asset, account. The reason for this is that supplies and inventory are seen as being able to be used for production or converted to cash within one year.


In accounting differentiate normal loss from abnormal loss?

Certain losses are inherent in the production process and cannot b eliminated.These losses occur under efficient operating conditions and are referred to as Normal or uncontrollable losses.-In addition to losses which cannot be avoided, there are some losses which are not expected to occur under efficient operating conditions, for example the improper mixing of ingredients, the use of inferior materials and the incorrect cutting of cloths. These losses are not an inherent part of the production process and are referred to as abnormal or controllable losses.-Normal loss is the loss expected during a process. It is not given a cost.-Abnormal losses is the extra loss resulting when actual loss is greater than normal or expected loss ,and it is given a costs.-Since an abnormal loss is not given a cost, the cost producing these units is borne by the good units of output.-Abnormal loss and gain units are valued at the same rate as "good" units. Abnormal events do not therefore affect the cost of good production. Their costs are analyzed separately in an abnormal loss or abnormal gain account


What is the need for cash referred to as?

liquidity needs


What are owned resources of a business referred to as?

assets


Owned resources of a business are referred to as?

Assets

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