Fixed and Current assets Flashcards
An asset is something that an enterprise owns. What are the types of asset?
There are two types of asset:
1) Fixed assets
2) Current assets
What are seven examples of assets?
Seven examples of assets are:
1) Computer equipment
2) Machinery
3) Business premises
4) Inventory
5) Cash in the bank
6) Money owed to the business by its customers
7) Cars, trucks
What are current assets?
Current assets are either:
1) Cash (money)
or
2) Items that can be converted into cash very easily
Current assets are either cash (money) or items that can be converted into cash very easily.
What are the types of current assets?
The types of current assets are:
1) Inventory
2) Cash
and
3) Debtors
Current assets are either cash (money) or items that can be converted into cash very easily.
The types of current assets are inventory, cash and debtors.
1) Inventory:
What does inventory mean?
Inventory means:
1) Raw materials used to make products
2) Products held for future sales to customers
Current assets are either cash (money) or items that can be converted into cash very easily.
The types of current assets are inventory, cash and debtors.
2) Cash:
Cash is …
Cash is received from customers in payment for goods and deposited in the bank
Current assets are either cash (money) or items that can be converted into cash very easily.
The types of current assets are inventory, cash and debtors.
3) Debtors:
Who are debtors?
Debtors are customers who owe money to the business
Calculating the value of current assets:
The value of current assets can be calculated by doing what?
The value of current assets can be calculated by adding together the value of the three types of current assets
Calculating the value of current assets:
The value of current assets can be calculated by adding together the value of the three types of current assets.
What is the formula for current assets?
The formula for current assets is:
Current assets = Value of inventory + Cash at bank + Debtors
What is a fixed asset?
A fixed asset is an item that enables products to be made and is not expected to be converted into cash any sooner than one year’s time
A fixed asset is an item that enables products to be made and is not expected to be converted into cash any sooner than one year’s time.
What are four examples of fixed assets?
Four examples of fixed assets are:
1) Business premises owned by the enterprise
2) Fixtures and fittings
3) Computers and equipment
4) Vehicles
Calculating the value of fixed assets:
The value of fixed assets can be calculated by doing what …
The value of fixed assets can be calculated by adding together the value of each fixed asset
Calculating total assets:
What is the formula for total assets?
The formula for total assets is:
Total assets = Current assets + Fixed assets
