When company make investments for short term that is less then one year time then these investments called current assets but while investments are for long run then those called long term investments.
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).
goodwill
The Asset/Liability Ratio is one of the easiest to figure: Current Ratio = Current Assets/Current Liabilities According to your question that should be: Current Ratio = 150 / 65 Current Ratio = 2.31 (rounded to two digits)
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
on the debit side of the balance sheet, we have the assets of a company. There are current assets and fixed assets and they should be equal to the Liabilities + the equity of a company.
Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities
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).
permanent asset should be financed with permanent and spontaneous sources of financing,while temporary assets should be financed with temporary sources of financing.
Investments
Vehicle is a fixed asset so it should be shown in fixed asset list and not in current asset list.
Current assets are always valued at current market values so if assets purchased is used a FIFO method then historical costs would be shown in balance sheet which may be change drastically and which presents not accurate information.
goodwill
The Asset/Liability Ratio is one of the easiest to figure: Current Ratio = Current Assets/Current Liabilities According to your question that should be: Current Ratio = 150 / 65 Current Ratio = 2.31 (rounded to two digits)
long term funds
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
on the debit side of the balance sheet, we have the assets of a company. There are current assets and fixed assets and they should be equal to the Liabilities + the equity of a company.
7AS 3b seSUDtirTe'pfinciples and methodolgy for accounting for impairments of non-current assets and goodwill. Where possible individual non-current assets should be tested for impairment, ver