ACCOUNTING NOTES 2 P2

The Accounting Concepts and Basic Financial Statements P2

Assets

 Current
- Realized in the entity’s normal operating cycle
- Held primarily for the purpose of being traded

TRADE RECEIVABLES = CURRENT ASSET

ACCOUNTS RECEIVABLES = CURRENT ASSET – because expected to be collectable within a
year

- Expected to be realized within twelve months after balance sheet

- Cash or cash equivalent is considered as current asset unless the purpose of the cash is to
pay liability for at least 12 months after the balance sheet
-
 Noncurrent
- Not current

Liabilities

 Current
- Expected to be settled in the entity’s normal operating cycle.
- Held primarily for the purpose of being traded
- Expected to be realized within twelve months after balance sheet
- The entity does not have an unconditional right to defer settlement of the liability for at
least twelve months after balance sheet date
 Noncurrent
- Not current

Account Form
-T Account
-as of
-assets and liabilities

Report Form
-total asset equal to total liabilities and capital
-assets and liabilities and capital
-as of

Income Statement / statement of comprehensive income

-for the year ended
-revenue and expenses