Classification Of Assets	Classification of Sources of Financing
Divided into 2 types:	Divided into 3 types
Permanent Assets   Expected to be held for more than a year   Two types viz:-     · Fixed asset   Permanent current assets which includes current assets like cash / stocks / receivables re: minimum cash or bank balance or minimum level of stocks (safety or buffer stocks) maintained by the firm over the year	Permanent Sources   Financing with maturing period more than one year which includes medium term loans, common stock and long term debts
Temporary Assets   Current asset that will be liquidated and replaced within the current year.   Therefore:   Current assets = Temporary + Permanent	Temporary Sources Short term financing like short term notes payable, commercial paper and loans secured by accounts receivable and inventories. Natural sources is the accounts payable/creditors of the firm.
	Spontaneous Sources   Comprises trade credit and other accounts payable that arise spontaneously in the firm’s daily operations. Other sources like accrued taxes, accrued expenses still not paid