What is the difference between assets and fixed assets?
Assets are resources owned by a company as the result of transactions. Examples of assets are cash, accounts receivable, inventory, prepaid insurance, land, buildings, equipment, trademarks and customer lists purchased from another company, and certain deferred charges.
The term fixed assets generally refers to the long-term, tangible assets used in a business that are classified as property, plant and equipment. Examples of fixed assets are land, buildings, manufacturing equipment, office equipment, furniture, fixtures, and vehicles. Except for land, the fixed assets are depreciated over their useful lives.
Learn more about fixed asset Depreciation.
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what is the difference between fixed assets & current assets
Fixed assets are long terms assets.
current assets are short terms assets.
Fixed asset is the asset which bought for not means of sale and for long term purpose like land,computer,furniture,vehicle….
whereas current asset is the asset which can be liquified or realised in short period..
Fixed asset is the asset which bought for not means of sale and for long term purpose like land,computer,furniture,vehicle….
whereas current asset is the asset which can be liquified or realised in short period..lilke stock,bank balance etc.,
Assets are the Resourses controled by an Enterprise as a result of past events & from which future economic benefits are expected to flow into the Enterprise for exa.
Machinery which comes into enterprise as a result of purchase & from which production is made.It contains both Liquid & Hard assets for exa.Debtors , Bills Receivable, Furniture etc.
While fixed Assets are the assets which are not easily converted into cash or cash equvalent,they require much time to liquified.these assets contain only Hard assets for exa. Machinery, Furniture etc.
Preparation of disposal of asset account is useless and time consuming activity. It is true
how do you account for an amorised expenses in your books
how do you account for an amortised expenses