Assets Accounts
Assets ang mga resources na owned ng business na may economic value. Ang proper classification nito ay super important para sa accurate financial reporting.
Current assets ay ma-convert sa cash within one year. Kasama dito ang cash (most liquid asset), accounts receivable, inventory, at prepaid expenses. Ang cash includes money sa bank at petty cash fund.
Non-current assets o fixed assets ay ginagamit sa operations for long periods. Examples ay land, building, equipment, furniture, at vehicles. Hindi sila madaling ma-convert sa cash pero essential sa business operations.
Understanding ang difference between current at non-current assets ay crucial sa financial analysis at decision-making.
Key Point: Current assets = convertible to cash within 1 year!