Those things that have a certain monetary value are known as assets.
There are three types of assets found: Current Assets, Fixed Assets and Others.
Defining these assets:
- Current Assets are mainly cash amount or those that can be converted to cash within span of a year. These include: Cash in hand/bank, Accrued Income, Prepaid Expenses, Short Term Investments, Stock in Trade, receivable Bills, Sundry Debtors and Marketable Securities.
- Fixed Assets are those that cannot be converted to cash on an immediate note. These include: Land and Buildings, Furniture, Machinery, Tools, Investments, Motors.
- Others are those that come unwanted and cannot be specifically categorised. These include: Patents and Trademarks, Prepaid Expenses, Goodwill and Preliminary Expenses.
Links of Previous Main Topic:-
- Preparation of final accounts
- Recording of business transaction basis of accounting
- Single entry system of bookkeeping
- Double entry system of bookkeeping
- Classification of accounts
- Rules of double entry or accounting rules
- Accounting cycle
- Trial balance
Links of Next Financial Accounting Topics:-