answersLogoWhite

0

in my point of view fixed assets are fix by nature and gives fix type of revenue and there is less chance of risk in it and on the other hand current assests are not fix likecash receipts,debtors .there is more risk factor in it.

User Avatar

Wiki User

15y ago

What else can I help you with?

Continue Learning about Finance

What is the difference between fixed assets and non current assets?

Fixed assets and non-current assets are basically the same. Both are defined as assests that are utilized or depreciated by a company over the course of more than a year.


What is the difference between current assets fixed assets and intangible assets?

Normally, cash is considered a current asset because it can be used within one year after the balance sheet date. However, in certain situations, cash may be classified as a non-current asset. For example, if a company has restricted cash in a bank account (i.e. cash that can't be used), and restriction is for more than one year after the balance sheet date, then, this cash is considered non-current


How do you calculate the current ratio and what does it indicate about a company's financial health?

The current ratio is calculated by dividing a company's current assets by its current liabilities. It indicates a company's ability to cover its short-term obligations with its short-term assets. A higher current ratio generally suggests better financial health, as it shows the company has more assets than liabilities to meet its short-term debts.


Are options more profitable than stocks?

Options can potentially be more profitable than stocks because they allow investors to control a larger amount of assets with a smaller amount of money. However, options trading also carries higher risks due to their leverage and complexity. It is important for investors to thoroughly understand options before trading them.


What two ratios are typically used to measure how a firm has financial assets?

Two common ratios used to measure how a firm manages its financial assets are the current ratio and the quick ratio. The current ratio assesses a company's ability to cover its short-term liabilities with its short-term assets, while the quick ratio provides a more stringent measure by excluding inventory from current assets. Both ratios help investors and analysts evaluate liquidity and financial stability.

Related Questions

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 difference between fixed assets and non current assets?

Fixed assets and non-current assets are basically the same. Both are defined as assests that are utilized or depreciated by a company over the course of more than a year.


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


What are fixed assets?

Fixed asset is a financial term, that is, in comparison to current assets (money, bank accounts), fixed, which means it can't be easily converted to liquid assets.


What are deposits reported as part of fixed assets?

Deposits are usually held for more than one year so dont fall into the category of current assets.


Explain fixed and Current assets?

Current Assets:These are those assets which are utilizable by the company in one fiscal/accounting yearFixed Assets:These are those assets which are utilized by the company for more then one fiscal/accounting year For example: Machinery, Land etc.


What are the differences between fixed assets and other assets in terms of their characteristics and accounting treatment?

Fixed assets are long-term assets that are used in the operations of a business, such as buildings and equipment, while other assets are typically short-term assets like cash and inventory. Fixed assets have a physical form and are not easily converted to cash, while other assets are more liquid. In terms of accounting treatment, fixed assets are recorded on the balance sheet at their historical cost and depreciated over their useful life, while other assets are typically recorded at their current market value.


Investment in government securities are fixed assets or current assets?

Is investment in government bond ,government securities, other asset ,investment in equity share and leasehold land are they a fixed asset of current asset please identify these all please need help on these.


What is the meaning of surplus on revaluation of fixed assets?

While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.


What Expenses recorded as fixed assets?

Those costs which used in business for more than one fiscal year treated as fixed assets.


What is the amount of the fixed asset?

Fixed assets are those assets which are available in business to generate economic revenue in business for more than one fiscal year.


Fixed assets is definitely not fixed why?

if the assets is sold, traded in or disposed of with in 12 months then its not in the business any more and all fixed is subject to change with in the 12 months there is no gurantees it will be here for 12 months.