Types of Assets In Accounting
Assets are the resources of the busi ness owned by the business against which the business will expect probable future economic benefits. These are contributed to the business against the claims of Outsiders (External Liabilities) or Internal Ow n ers (Internal Liabilities or Equity or Capital ) of the business according to Accounting Equation i.e., Assets = Liabilities + Owners’Equity . Assets can be divided based on: Time Period, Physical Existence, Future Aspects, Financial Aspects, Investment Aspects, Liquidating Aspects, etc. 1. Current And Fixed Assets The two Primary types of Assets are Current Assets and No n Current Assets / Fixed Assets Long-term Assets.. Current Assets having life equal to one year or less while No n Current Assets have long life usually more than one year. List of Current Assets are (i) Cash (ii Inventory (iii) Accounts Receivable (iv) Prepaid Expenses (V) Prepayments List of N on C...