ASSESTS

Assests

Assests

What are the Current Assests?

A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, securities, prepaid expenses and other assets that can be converted into cash in less than one year. A company, the creditors are often interested in how much of what the company has in current assets as these assets can be easily removed in case of bankruptcy of the company. In addition, current assets are important to most companies as a source of funds for daily operations.

First listed in the column on the balance sheet assets of the so-called "current assets". This is a list of companies, where all these things that can be converted into cash within a short period of time [typically one year or less]. Because these assets are easily converted into cash, they are sometimes called "liquid." (Knights, 2003)What Non-Current Assests?

Active, not readily convertible to cash or not expected to become cash within the next year. Examples include fixed assets, leasehold improvements, as well as intangible assets. opposite of current assets. (Morgan, 2005)What is the Difference between the Current And Non-Current Assets?

Current assets are relatively liquid, that is, they can be changed into, or will survive as cash in the near hope, and are not held long term. Examples of current assets include trade debtors, work in progress and finished goods, cash in their hands etc.

Cost current assets and fixed assets, which will be held to continue the operation, they are held for long-term use. They are often illiquid and examples could be of plant, equipment, buildings, etc.

More can be done distinguishment between material and non tangible assets. Those listed above the material, that they have a physical existence, intangible assets may include patents, trade marks and brands, and ...