Normally, all the assets which will convert in cash within a year will be the current assets of organisation. Sometime, you may confused when you are new in any company where you do not know which assets will convert within a year. So, you have to take the help from common current assets examples. You must add all following assets as current assets.
1.Cash
Cash is one of main current asset. Cash in the hand at the end of year will be your current asset. For example ABC company has $ 2000000 cash in hand at the end of year.
2. Cash Equivalent
Today, we have bank accounts. All the balance in current and saving account will be cash equivalent. It will be our current asset. For example, Mr. Sam has 5 banks account and balance at the end of the year is $ 11000000 is his current asset. All money market investment will be also cash equivalent because within the day, it can be converted into cash.
3. Account Receivables
All the investments which are done by selling goods on credit will be current asset. We know it account receivables. Debtors or account receivables will show in the current assets because we can receive the same amount within the year. For example, ABC company has sold $ 12000000 goods on credit. So, $ 12000000 will be his account receivables. So, it will be his current asset.
4. Notes Receivables
If you get advance checks from debtors, it will be notes receivables. For example, you do not trust on Mr. Mohan, So, before selling $ 20,000 goods on credit, you get $ 18000 advance check on your name. So, it is your current asset. If you have written bill of exchange and debtor is responsible to pay the amount in it, it will also your current asset.
5. Inventory
Stock at end of year will be your current asset. In this inventory, you can include raw material stock, work in progress and finished stock. For example, you have raw material of $ 100000, work in progress stock of $ 400000 and finished stock of $ 450000. All will be the part of current asset.
6.Prepaid Liabilities
All the liabilities which you have paid before the maturity will be your current asset. For example, to pay your employees is your liability. But this liability will be due at the end of month but your paid at the beginning of month before actual service taken, so this is your current asset.
7. Short-term Investments
All the short term investments will be current assets.
8. Income Tax Refunds Receivables
If income tax department accepted to refund the our excess paid income tax. Then it will be our current asset
9. Advance Income Tax
Our responsibility is to pay tax in assessment year on all the incomes which we have obtained in previous year. If we have paid income tax advance, it is our current asset.
10. Advance Payments for Future Purchases
If you did not buy anything but pay for future buying of goods, then this advance payment will be your current asset.
11. Undeposited Cheques
If you have deposited checks for collection and your bank has collected money from your customer on your behalf, then it will be your current asset. It is undeposited cheques. For example, you have received $ 25000 cheque from ABD party. You have sent to bank for collection. Bank collected it but due to mistake, bank could not deposited into your bank account. Still it will your current asset in your balance sheet.
Related : Non-Current Assets Examples
Category : Accounting Exampleshttp://www.svtuition.org/2009/12/what-is-company-what-are-its-features.html
1.Cash
Cash is one of main current asset. Cash in the hand at the end of year will be your current asset. For example ABC company has $ 2000000 cash in hand at the end of year.
2. Cash Equivalent
Today, we have bank accounts. All the balance in current and saving account will be cash equivalent. It will be our current asset. For example, Mr. Sam has 5 banks account and balance at the end of the year is $ 11000000 is his current asset. All money market investment will be also cash equivalent because within the day, it can be converted into cash.
3. Account Receivables
All the investments which are done by selling goods on credit will be current asset. We know it account receivables. Debtors or account receivables will show in the current assets because we can receive the same amount within the year. For example, ABC company has sold $ 12000000 goods on credit. So, $ 12000000 will be his account receivables. So, it will be his current asset.
4. Notes Receivables
If you get advance checks from debtors, it will be notes receivables. For example, you do not trust on Mr. Mohan, So, before selling $ 20,000 goods on credit, you get $ 18000 advance check on your name. So, it is your current asset. If you have written bill of exchange and debtor is responsible to pay the amount in it, it will also your current asset.
5. Inventory
Stock at end of year will be your current asset. In this inventory, you can include raw material stock, work in progress and finished stock. For example, you have raw material of $ 100000, work in progress stock of $ 400000 and finished stock of $ 450000. All will be the part of current asset.
6.Prepaid Liabilities
All the liabilities which you have paid before the maturity will be your current asset. For example, to pay your employees is your liability. But this liability will be due at the end of month but your paid at the beginning of month before actual service taken, so this is your current asset.
7. Short-term Investments
All the short term investments will be current assets.
8. Income Tax Refunds Receivables
If income tax department accepted to refund the our excess paid income tax. Then it will be our current asset
9. Advance Income Tax
Our responsibility is to pay tax in assessment year on all the incomes which we have obtained in previous year. If we have paid income tax advance, it is our current asset.
10. Advance Payments for Future Purchases
If you did not buy anything but pay for future buying of goods, then this advance payment will be your current asset.
11. Undeposited Cheques
If you have deposited checks for collection and your bank has collected money from your customer on your behalf, then it will be your current asset. It is undeposited cheques. For example, you have received $ 25000 cheque from ABD party. You have sent to bank for collection. Bank collected it but due to mistake, bank could not deposited into your bank account. Still it will your current asset in your balance sheet.
Related : Non-Current Assets Examples
Category : Accounting Exampleshttp://www.svtuition.org/2009/12/what-is-company-what-are-its-features.html
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