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...
If a good or service takes over a year to convert to cash, it would be considered a long-term asset and wouldn't be reported under current assets. Instead, it would be classified as a non-current asset. Inventory Your business' raw materials and ...
Short-term investments are cash equivalents that are considered liquid assets. Cash equivalent assets include stocks, bonds, savings accounts, and mutual funds. Prepaid Expenses Prepaid insurance is recorded as a current asset on the balance sheet. It's the term used to describe advance payments fo...
The difference between current and non-current assets is pretty simple. Current assets are resources that are expected to be used up in the current accounting period or the next 12 months. Non-current assets, on the other hand, are resources that are expected to have future value or usefulnes...
What assets are considered operating assets in return on investment computations? Describe the Accounting for Intangible Assets. Give an example. How is the cost of an intangible asset determined? Provide examples. What is financial statement analysis? Explain. Define a...
What is the accounting principle which dictates that non-current assets should be valued at cost, less accumulated depreciation, rather than their enforced saleable value?? MaterialityBusiness entityConsistencyGoing concern相关知识点: 试题来源: 解析 Going concern ...
What if the period of converting assets is more than one year, is it not considered a current asset? What about investments instead of cash? Or what if I have loans? Are these counted when calculating total current assets? Byysmina— On Feb 08, 2011 ...
What is a Cash Asset Ratio? What is Current Market Value? What is Accumulated Depreciation? What is an Asset Swap? What is an Asset Turnover? Discussion Comments Byanon329961— On Apr 13, 2013 What is a treasury bill maturing in six months considered? Cash, a receivable, a short term ...
Inventory—which represents raw materials, components, and finished products—is included in the Current Assets account.7However, different accounting methods can adjust inventory; at times, it may not be as liquid as other qualified current assets depending on the product and the industry sector. F...
Both the current account and capital account of a nation's finances detail aspects of its balance of payments. The current account shows how much a country brings in income, signifying its balance of trade. The capital account details inflows and outflows that impact a nation's assets and lia...