Generally, assets are classified as follows:
- Current
- Non-Current
- It is cash or cash equivalent which is not restricted for current use.
- It is expected to be realized, or is held for sale or consumption in the normal course of the business' operating cycle.
- It is held for trading purposes or for the short-term and expected to be realized within twelve months of the SFP date.
Non-Current Assets are those assets which do not meet the criteria of current assets.
Generally, they include those tangible and intangible assets of a long-term nature (usually, more than 12 months from SFP date).
Examples of Assets Elements
Current Assets Elements
- Cash -
- Accounts Receivable
- Notes Receivable
- Accrued Interest Receivable
- Inventories
- Prepaid Expenses
- Land
- Building
- Furniture and Fixture
- Equipment
- Allowance for Doubtful Accounts
- Accumulated Depreciation
Asset accounts has normal debit balances.
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