Write what you know about current assets and current liabilities.
Called current assets. Such assets are easily converted into cash during an accounting Period of a firm. These assets are also called floating assets or circulating assets. Cash In hand, cash at bank, bills receivable, sundry debtors, accrued income etc. are the Examples of current assets. Current Liabilities: TheContinue Reading
Write the meaning of current assets with suitable example.
The cash or other assets that can be easily converted into cash within an accounting Period are known as current assets. These assets are held for a short period of time i.e.Generally one year. Current assets are also known as floating or circulating assets.Cash, bank balance, marketable securities, prepaid expenses,Continue Reading
Fixed assets and Current assets
Fixed Assets: Those asses whish are owned and used by the firm for generating cash Assets are of two types i.e. tangible fixed assets and intangible fixed assets. Tangible Fixed assets have their physical existence and intangible assets do not have their Physical existence. Furniture, land and building, plant andContinue Reading
Define balance sheet and write any two importance of it.
Balance sheet is the summarized statement of the company, which shows the assets as the resources possessed by the company in one hand and capital and liabilities on the other hand at the given date. It is prepared from the balances of assets and liabilities Extracted from the trial balanceContinue Reading
Write two advantages of trial balance.
Trial balance is the statement of debit and credit balances of ledgers which is prepared At any date for checking arithmetical accuracy of books of account. It has the following Advantages: a. It helps to check arithmetical accuracy of books of account. b. It facilitates for preparation of income statementContinue Reading
