What is a current assets? read more on:Asset should classify only into two terms : current assets and non-current assetsIt is current assets when:It is expected to be realized in, or is held for sale or consumption in, the normal course of the enterprise's operating cycle.
Other term for tangible asset is Liquid assets includes:Cash- This is any medium of exchange that the bank will accept for deposits at face value such ordersBank deposits and draftsCash equivalents- These are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an intangible risk of change in value. Short -term Investments- Investments which are readily marketable and represent temporary investment of funds available for current operations and are intended to meet working capital requirement. Notes Receivable- Is a written pledge that the customer will pay the business a fixed amount of money on a certain date.Accounts Receivable- These are claims against customers arising from sale of services or goods on credit.Inventories- These are assets which are held for sale in the ordinary course of business.Prepaid Expenses-These are expenses paid for by the business in advance.
In accounting, Accounts Receivable (AR) is the amount of money to be collected from customers or clients. It is usually classified as a current asset as most AR are collectible within a year or normal operating cycle of the business.
To know more about asset, just kepp on reading.Assets
In accounting, assets are the resources that a company owns and has monetary value.Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash -on- of non-current asset:LandEquipment/MachinesIntangible assets