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The basis for classifying assets as current or non-current is conversion to cash within?
Wiki User
∙ 13y ago
operating cycle or one year, whichever's longer
Wiki User
∙ 14y ago
Wiki User
∙ 13y agothe operating cycle or one year, whichever is longer
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How do you convert noncurrent assets into 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
What accounts the assts division should contain?
2 main typrs of assets : A- Current Assets B- nonCurrent Assets Current assets include Cash and any other items which can convert to cash within one year , Examples of Current assets are Cash , Acc. Rec. , Inventory , Prepaid Expenses NonCurrent Assets : items can't be easily Converted into Cash & will use for extended period of time B-NonCurrent Assets include 1-Fixed Assets " Tangible Assets " : Land, building , office furniture , vehicle ... 2- Intangible Assets : GoodWill , Patent , Trademark... 3- Long Term Investment : Bonds, Security & notes
Are accounts payableand notes payable listed under current-noncurrent classification?
Accounts payables are listed in current assets because normally creditors are paid within short term time period.
How would you determine whether an asset is current asset or noncurrent asset?
I am taking a course in Accounting, and I was taught that an asset is current if it will be used up within one year. Long-term assets are those that last over 12 months.
What are net current assets?
Formula for net current assets :net current assets = current assets - current liabilities
What is the difference between current assets vs total assets?
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
What are permanent current assets?
Permanent current assets are current assets that are replaced with like assets within one year.
How do you find the percentage of current assets to total assets?
percentage of current assets to total assets
Are investments current assets or other assets?
If investments are for short term then these are current assets but if these are for long term then non-current assets.
Fixed assets to current asset ratio?
fixed assets / current assets
Is accounts receivable a current or non current assets?
Current assets
Sam reported total assets of 1903000 and non current assets of 894410 He also reported a current ration of 1.60 What amount of current liabilities did he report?
Current assets = total assets - long term assets Current assets = 1903000 - 894410 Current assets = 1008590 Current ratio = 1.6 Current ratio formula = Current asset / Current liabilities 1.6 = 1008590 / Current liabilities Current liabilities = 1008590 / 1.6 Current liability = 630369
