Current assets are assets that are likely to be converted into cash within the operating period--that is the assets of the company that are most liquid. These mainly consist of the following:
Non current assets are assets that are unlikely to be converted into cash, but rather items that the company will keep over a long period of time. Examples of theses are as followed:
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
Accounts payables are listed in current assets because normally creditors are paid within short term time period.
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
The ratio between current assets to current liability is called "Current Ratio".
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.
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
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
Accounts payables are listed in current assets because normally creditors are paid within short term time period.
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
The ratio between current assets to current liability is called "Current Ratio".
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.
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.
the difference between total current assets and total liability is the working capital. It goes with a formula 'current asset -current liability =working capital '
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
Current assets are assets include assets that will converted into cash or consumed in the current operating period while total assets include all assets regardless of when they will be converted to cash or consumed.
Solvency. A company is considered solvent if it's current assets exceed it's current liabilities. A company is considered to be insolvent if their current liabilities exceed their current assets.
The current assets to fixed assets ratio measures how many current assets are bought or utilized through fixed assets. There's no specific agreed ratio on this.it measures the proportion between the current assets and fixed assets the company acquires.