Fixed and current assets- page 26 Flashcards
1
Q
Asset
A
Something a business owns
2
Q
Two types of asset
A
- Fixed asset
- Current asset
3
Q
Current asset
A
Current assets are either (money) or items that can be converted into cash very easily
4
Q
Types of current assets
A
Stock- raw materials used to make products
Cash in the bank- Received from customers in payment for goods and deposited in the bank
Debtors- Customer who owe money to the business
5
Q
Fixed asset
A
A item that enables products to be made and is not expected to be converted into cash any sooner than one year
6
Q
Types of fixed assets
A
- Building (premises owned by the enterprise)
- computers and equipment (machinery)
- vehicles
7
Q
How do you calculate the value of fixed assets?
A
Can be calculated by adding together the value of each fixed asset
