Assets of a company that are expected to be sold or used An asset that can easily be converted into cashAnswer: C) Assets of a company that are expected to be sold or usedExplanation:Current assets address every one of the resources of an organization that are relied upon to be advantageo...
A noncurrent asset is an asset that is not expected to turn to cash within one year of date shown on a company’s balance sheet. (This assumes that the company has an operating cycle of less than one year.) A noncurrent asset is also known as a long-term asset. Noncurrent assets ...
A current asset is a company’s cash and its other assets that are expected to be converted to cash within one year of the date appearing in the heading of the company’s balance sheet. However, if a company has an operating cycle that is longer than one year, an asset that is expect...
prepaid rent is a current asset. This is rent that was paid for but not used yet. When a tenant pays the landlord a month’s rent in advance, the landlord owes the tenant a month’s worth of rent. This is a resource is an asset and the tenant records it like a receivable in this...
An asset is a resource that a company owns for the purpose of either current or expected future economic benefit. Or, in plain language, an asset is something you own or control that you think can be converted into cash in the future or right now. ...
Similarly, other liquid assets will also be classed as current assets. These would typically include accounts receivable and inventory. There can, however, be nuance here. For example, if a business has a long-term relationship with a client, it is possible that they might be given more than...
Liquidity and current assets were subjects we studied in college economics. The piece of information that really stuck with me from then, is that money is a liquid asset. It's the most basic liquid asset because it can be sold (spent) immediately. The longer it takes for an asset to be...
Other Current Assets Prepayments and insurance premiums whereby the expiry of the cover is beyond the end of the financial year will also count as current assets. For example if a trade protection policy with an annual premium of £2000 still has three months to go at the end of the finan...
A liquid asset is an asset that can easily be converted into cash within a short amount of time. Liquid assets generally tend to have liquid markets with high levels of demand and security. Businesses record liquid assets in the current assets portion of their balance sheet. ...
Capital investment decisions look at many components, such as project cash flows, incremental cash flows, pro forma financial statements, operating cash flow, and asset replacement. The objective is to find the investment that yields the highest return while ignoring anysunk costs. Return on invested...