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In a Sinking Fund cash or cash assets are set aside for what purpose?
A bond sinking fund is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.
What is the difference between current assets and quick assets?
Current Assets should be convertible into cash in the coming year. Quick assets are cash or are easily converted into cash (no liquidity or marketability issues).
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
What are the examples of current assets?
Current assets are those which are held for less than 1 year.Examples of current assets are:1. Cash2. Accounts receivable3. Notes receivable
Does assets decrease when an owner withdraws cash?
Yes owner withdraws in form of cash or assets so ultimately it reduces the assets of business as well.
In a Sinking Fund cash or cash assets are set aside for what purpose?
A bond sinking fund is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.
Are Cash in restricted fund assets?
Yes, Cash Can be restricted Funds. If a corporation keeps the money separate just for a limited purpose then it is defined as restricted funds.
What is the difference between current assets and quick assets?
Current Assets should be convertible into cash in the coming year. Quick assets are cash or are easily converted into cash (no liquidity or marketability issues).
Are fixed assets a liability?
Fixed assets are not liabilities, they are assets that can not be quickly liquidated (turned into cash). If the company goes under, fixed assets would be difficult assets to get cash for.
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
What are the examples of current assets?
Current assets are those which are held for less than 1 year.Examples of current assets are:1. Cash2. Accounts receivable3. Notes receivable
What does liquid assets mean?
Simply answered, it means cash or assets that can quickly and easily be converted to cash.
What the difference between current assets vs total assets?
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.
Does assets decrease when an owner withdraws cash?
Yes owner withdraws in form of cash or assets so ultimately it reduces the assets of business as well.
Where does bond sinking fund go on balance sheet?
A bond sinking fund is reported in the section of the balance sheet immediately after the current assets. The bond sinking fund is part of the long-term asset section that usually has the heading "Investments." The bond sinking fund is a long-term (noncurrent) asset even if the fund contains only cash. The reason is the cash in the fund must be used to retire bonds, which are long-term liabilities. In other words, because the money in the bond sinking fund cannot be used to pay current liabilities, it must be reported outside of the working capital section of the balance sheet. (Working capital is current assets minus current liabilities.)
Are prepayments nonmonetary assets?
Yes. You will receive / provide no cash or cash-equivalents. You will get / provide some assets for the prepayments.
What types of controls should a company implement with respect to managing it's cash assets?
A company should implement strict internal controls related to the management of its cash assets. This includes who is permitted to access cash assets, how cash can be spent, and how much cash should remain in accounts.
