Core current assets are the permanent current assets. These are the essential assets that an organization needs to cover routine activities. To calculate the maximum permissible bank finance, core current assets value is subtracted from the total current assets, because it is not liquid.
(current asset - core current asset)- (net w/c) - (other current liability) = mbpf (tandon committee)
The acronym MPBF stands for Maximum Permissible Banking Finance. It is an organization where corporate is advised not to gain too much of a current stock or asset. Instead it is suggested that they go for receivable levels and inventories using two different methods to fund corporate's capital needs.
Current asset
Current asset.
Current Asset
non current asset
Current Asset
non-current assets.
non current
it is a expense
[Debit] Asset Under finance lease xxxx [Credit] Liability Under finance lease xxxx
is closing inventory a current or non current asset