Explain what are non-current assets and current assets owned by a business

January 27th, 2012 Comments off
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As we know assets are property owned by a business which consists of two major categories namely:

  • NON-current assets and
  • Current assets
NON- CURRENT ASSETS CURRENT ASSETS
  • Assets bought not for resale but to be used in the operations of the business with useful lives of MORE THAN ONE YEAR.
  • Divided into three categories namely:-
  • (a) TANGIBLE non-current assets
  • (b) INTANGIBLE non-current assets and
  • (c)INVESTMENT

 

Tangible non-current assets:-

  • Machinery, land and building, office equipment, furniture and fittings, motor vehicles,etc

Intangible non-current assets:-

  • Trademark, goodwill, patterns, franchise,etc

Investment:-

  • Quoted and unquoted Investment, fixed deposits maturity more than 1 year,etc
  • Assets that are either cash or those than can be converted into cash within one year.
  • Assets which constantly change their form during an accounting period.
  • Examples are Inventory/stock, accounts receivables, cash at bank and cash in hand

 

 

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Financial Accounting

 
 

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