Acc 380
Soc 313 - In all organizations the Accounting department is a major player in the control of monetary budgets and estimated gain or looses, which in turn can determine the success or default of the organization itself. The estimated term is usually a physical year also known as an operating cycle in which an organization can turn around this assets into cash by selling its product and collecting the profits of this product sales with in 60 to 180 day’s. This money is applied to finance the organizations daily operations and for creditors is the main component to determine and provide the necessary credit to those organizations requesting assistance from financial institutions. In this weeks paperwork assignment Current and Non-current assets will be the topic of discussion as Current Assets is a major part in a balance sheet followed by Non-current assets.
What are current assets?
Acc 380 - Current assets is descried as the item in a balance sheet in which is equal to cash, cash equivalents, accounts receivables, inventory, market securities, prepaid expenses and other items that could be turn into cash in less than a year. Current Assets fall under five categories a) Cash and equivalents, meaning in the form of cash money, bonds, or market funds. b) Short and long term investments, such items as bonds that provide a higher return in interest usually done in quarterly terms. c) Accounts receivable, money own to an organization for its services or product and usually collected quarterly. d) Inventory, item, or components in the form of finish good’s or raw materials, this is critical to an organization to create revenue the rate of overturn in product has to be grater then the rate of production, any organization with an exceed of inventory is a sign for default.
Acc 380
What are current assets?
Acc 380 - Current assets is descried as the item in a balance sheet in which is equal to cash, cash equivalents, accounts receivables, inventory, market securities, prepaid expenses and other items that could be turn into cash in less than a year. Current Assets fall under five categories a) Cash and equivalents, meaning in the form of cash money, bonds, or market funds. b) Short and long term investments, such items as bonds that provide a higher return in interest usually done in quarterly terms. c) Accounts receivable, money own to an organization for its services or product and usually collected quarterly. d) Inventory, item, or components in the form of finish good’s or raw materials, this is critical to an organization to create revenue the rate of overturn in product has to be grater then the rate of production, any organization with an exceed of inventory is a sign for default.
Acc 380