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What is the Difference between Current Assets and Fixed
Assets and how would you classified it
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Answer / r.sivaraman
The difference between current assets and fixed assets as
follows:
Current assets are flexible in nature, easy to encashable
and floting money to company whereas
Fixed assets are Fixed in nature in other words non-moving
assets, not easy to encash, regularly depreciated.
Classification:
Current assets:
Cash - at hand and at bank
Inventories
Sundry Debtors
Advance and Deposits
Fixed Assets:
Land and Building
Furniture and Fittings
Tools and tackles
Plant and Machinery
Computer ( including assessories and UPS)
| Is This Answer Correct ? | 244 Yes | 20 No |
Answer / arjun_gatsby
Fixed assets can be used for more than a substantial period
stated in AS 16 ( i.e. 12 months ) and which could be
identified as Tangible
However Current assest are of nature of short term and
which are easily convertible into cash
| Is This Answer Correct ? | 103 Yes | 20 No |
Answer / toshif patel
Current Assets are also known as Liquid Assets as it can be
easily ancash like We can easly withdraw many from Bank,
Can Recive mony from Debtors, etc.
But in case of Fixed Assets They can,nt easly Sold out.
becouse they can be inforce of Bussiness more than Year
| Is This Answer Correct ? | 73 Yes | 17 No |
Answer / guest
Current assets in those assets this are easily convert in
cash with in one year or emidetly. (For ex:- stock, debtor,
prepaid ex:- gold, bond, fixed investment in bank & bank
account.)
Fixed assets in those assets this are not easily convert in
cash or taken more time to liquidation.(For ex:- land,
building, machinery & furniture.)
Main difference between current assets and fixed assets is
Current assets use shot team and this fig er or quantity
always changes this are raining assets (bank accounts,
stock & cash)
Fixed assets is long time using purpose so this is not
Chang more time. most of capitals money in investing on
fixed assets.(land, plant, machinery & building)
| Is This Answer Correct ? | 51 Yes | 13 No |
Answer / kkrao1983
hi, this is koteswara rao.
current assets means we can easily convert into cash with
in short time( with in one year).that is called currenct
assets.
example:cash in hand, bank a/c, stocks etc
fixed assets: it will take some time to convert into cash,
it will take depends on the assets.
ex: land, mationary,building etc
| Is This Answer Correct ? | 36 Yes | 12 No |
Answer / md sultan raza
current assets is an assets which can be easily convertable
into rupees.it is also used to meet the daily expenditure
of the company.the duration of current assets is normally 1
to 2 yeaqrs.
fixed assets is an assets which is acquired to use in the
organisation for a long period of time to help in the
servicing or manufacturing process.the duration of fixed
assets is normally more than 5 years.
| Is This Answer Correct ? | 27 Yes | 10 No |
Answer / vijay gupta
current assets ia an assets which can be easily convertible
in to cash with in a shorter duration. This is important
that these assets can be created from ordinary, investing
or financing activities.
Fixed assets are those which arises from investing
activities of the enterprises so that benefits can be taken
regularly for a longer period.
| Is This Answer Correct ? | 23 Yes | 8 No |
Answer / roty ioane
The different between current asset and non current asset
is that current asset are the assets that are easily
converted into cash and it is held primarily for the
purpose of being traded, where as the fixed assets is the
assets that are not easy to encash, and regularly
depreciated
| Is This Answer Correct ? | 20 Yes | 5 No |
Answer / sham
The basic difference between current assets and fixed
assets is given below:
Current assets are flexible in nature, easy to convert in
money for company on the other hand Fixed assets are those
assets which are Fixed in nature, not easy to convert in
money for company.
Classification:
Current assets:
Cash in hand and at bank
Stock in hand
Sundry Debtors
Loans & Advances
Fixed Assets:
Land and Building
Furniture and Fittings
Tools and tackles
Plant and Machinery
Computers & Laptops
Printers etc.
| Is This Answer Correct ? | 14 Yes | 7 No |
Answer / tpai
current asset can be seen as an asset which can be easily
converted to cash ,it is always ready to be convretd.
example cash at bank , gold ,stocks etc while fixed asset
is a long term investment that can cannot be easily
converted to cash for in instance you can wake up one
morning and decide to collect all the money in your accout
which will be given to you by the bank peacefully without
stress but you can"t easily sell your machnery because it
there to serve the company for a specific period of time
because if that is done the company might fold or might
have to borrow inorder to continue the day to day opreation
of the business .other examples of fixed asset are land
furntures and fittings etc
| Is This Answer Correct ? | 10 Yes | 4 No |
State with reason which account should be debited and which account should be credited in each of the following transactions: 1. Raj commenced business with cash Rs. 5000 2. Bought goods from Kiran for cash Rs. 1000 3. Sold furniture to Ravi on credit Rs. 500 4. Sold goods for cash Rs. 800 5. cash purchases Rs. 600 6. Bought Stamps Rs. 10 7. Withdrew cash from the business for personal use Rs. 1000 8. Paid salary to manager Rs. 500 9. Paid rent to landlord Rs. 200 10. Received commission from Mani Rs. 50 11. Paid for repairing machinery Rs. 30 12. Received cash form Ravi on account Rs. 400 13. Gave loan to Babu Rs. 500 14. Purchased goods from Sachin Rs. 400 15. Opened a bank account with Rs. 1000 16. Charged Mohan Rs. 50 commission for service rendered to him 17. Santosh paid the interest on loan advanced to him 18. Received loan from Manju Rs.10000 19. Office furniture stolen Rs. 500 20. Paid income tax Rs. 5000 21. Paid life insurance premium Rs. 300 22. Allowed discount to Babu Rs. 90 23. Discount received from Santosh Rs. 150 24. Amount charged by bank as bank charges Rs. 30 25. Railway fright paid on machinery purchased Rs. 100
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