Assets

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
• Journal
• Ledger
• Trial balance
• Income
• Expenditure

Links of Next Financial Accounting Topics:-

• Liabilities
• Final accounts
• Trading account
• Profit and loss account
• Balance sheet
• Adjustments in financial accounting