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Normal business operation will cause the differences in two years of current assets. Any company in business is in business to earn money, therefore current assets are constantly changing with purchses, sales, etc. If current assets constantly stayed the same from year to year, then the business would not be doing much turnover and would be bankrupt very quickly.
A merchandising business for example buys and resales merchandise, therefore they purchase Inventory, sale the Inventory, purchase more Inventory, fluctuating the current assets constantly.
The paying of expenses also decreases assets (cash), expense are what keeps a business in business.
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How do current assets differ from the current liabilities?
Current assets are different from current liabilities in this sense that current assets are usable in current fiscal year to generate revenue while current liabilities are all those amount or items which are already used in current fiscal year and amount is still payable in current year.
What are permanent current assets?
Permanent current assets are current assets that are replaced with like assets within one year.
Can long term assets become current assets?
yes in the year in which they need to be dissolved in that year those assets can become current assets.
What is the different between non-current assets and current assets?
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.
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
Current assets are those assets that can be converted into cash within?
Current assets are those assets which are usable within one fiscal year of business and converted within one fiscal year.
Difference between fixed assets and current assets in manufacturing?
fixed assets are those assets used for more than one fiscal year while current assets only used for one fiscal year.
What is the current ratio formula?
Current Ratio = Current Assets / Current Liabilities Current Assets : all assets which is utilized in one fiscal year like cash, bill receivable, inventory etc Current Liablities vise versa of Current Assets.
What is the difference between assets and fixes 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
Difference between current assets and current liability?
Current assets are those items which are usable during current year while current liabilities are those payments which are payable within one fiscal year.
What is the difference between fixed assets and current assets?
current assets areflexible in nature ' easy encash fixed assets are fixed in nature ;non-moving assets are not easy to encash regulary [by:naruto akiem]
How do you figure out average total asset?
(total assets current year + total assets prior year)/2 total assets current year plus total assets prior year then divide that total by two to find the average. Dont over-think this.
