Interested to Buy Any Domain ? << Click Here >> for more details...
What are the current liabilities & current Assets
- 2 Answers
- 7688 Views
- ABC, Steria, I also Faced
- E-Mail Answers
Answer Posted / gayatri
Current Assets. For accounting purposes, the term current
assets is used to designate cash and other assets or
resources commonly identified as those which are reasonably
expected to be realized in cash, or sold or consumed during
the normal operating cycle of the business. Thus, the term
comprehends in general such resources as:
1.cash available for current operations and items which
are the equivalent of cash,
2.inventories of merchandise, raw materials, goods in
process, finished goods, operating supplies, and ordinary
maintenance material and parts,
3.trade accounts, notes, and acceptances receivable,
4.receivables from officers, employees, affiliates, and
others, if collectible in the ordinary course of business
within a year,
5.installment or deferred accounts and notes receivable,
if they conform generally to normal trade practices and
terms within the business,
6.marketable securities representing the investment of
cash available for current operations, and
7.prepaid expenses such as insurance, interest, rents,
taxes, unused royalties, current paid advertising services
not yet received, and operating supplies.
Prepaid expenses are not current assets in the sense that
they will be converted into cash, but in the sense that, if
not paid in advance, they would require the use of current
assets during the operating cycle.
Current Liabilities. The term current liabilities is used
principally to designate obligations whose liquidation is
reasonably expected to require the use of existing resources
properly classifiable as current assets, or the creation of
other current liabilities. As a balance-sheet category, the
classification is intended to include:
1.obligations for items which have entered into the
operating cycle, such as payables incurred in the
acquisition of materials and supplies to be used in the
production of goods or performance of services, and
2.debts which arise from operations directly related to
the operating cycle, such as accruals for wages, salaries,
commissions, rentals, royalties, and income and other taxes.
Other liabilities whose regular and ordinary liquidation is
expected to occur within a relatively short period of time,
usually twelve months, are also intended for inclusion.
Examples are:
1.short-term debts arising from the acquisition of
capital assets,
2.serial maturities of long-term obligations,
3.amounts required to be expended within one year under
sinking fund provisions, and
4.agency obligations arising from the collection or
acceptance of cash or other assets for third-person accounts.
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
what is the D.V.T. rate from 1/10/2009
How does accounting contribute to the community?
if cheque bounced what we received from customers and payed to bank what entry should we create in single entry system
1.WHAT IS BRS? 2.WHY DO WE PREPARE BALANCE SHEET? 3.WHAT IS TRIAL BALANCE? 4.WHAT IS VENTURE CAPITAL? 5. WHAT IS DEFFERED REVENUE EXPENDITURE?
HI FRNDS THIS IS NARESH I DONE MBA (FINANCE)IN 2011. AND I DID COMPLETE SAP FICO.I WANT TO DO START CAREER WITH SAP FICO PLZ TELL ME PLZ HAVE ANY INTERVIEW AS FRESHER IN HYD OR PLZ SEND THIS MAIL...NAINALA.NARESH@GMAIL.COM
What is the TDS rate in Maharastra, Tamil Nadu, Karnakata,Odisha & West Bengal. What is about Profession Tax.
What is the difference between a cash flow statement and an accural profit & loss account ? And why do simple organisations do not feel the need for a profit and loss type of statement ?
In accounting, are assets a permanent account?
if company give the purchase order worth of 10,000 (INR) in advance, but the seller only sell around 8,000 (INR)and remain ing Rs 2000 return to the company, so how to deal with this scenario in accounts payable in oracle, can u hide to me
What software applications have your used for accounts receivable?
Explain me your track record in previous jobs, specifically speaking to any mistakes you may have made. There is little room for error in accounting?
What are the items that are to be debited in accounting and what are the items that are to be credited in accounting?
My question is.. I Received the amount from party through the bank. example. 1. Actual received from party $1000 @ 32.70 = 32,700 baht(service charge included ) 2. Bank Charge 500 baht 3. Given the credit to pary $ 1000 @ 32.50 = 32,500 baht 4. and bank charge 500 debit on party account also. .... For the First three transacion on account bank account dr 32200 bank charge dr 500 party cr 32,500 ex. fluxation cr 200 how can treate the 4th transaction. thanks in advance
Is it possible to change the accounting period under Indian GAAP from 1/Apr-31March to 1/January-31/December? There is any restriction in doing that, i mean for example for fisal purposes? Thank you all!
what is the head for stock trnasfer
