ASSETS AND TYPE OF ASSETS

WHAT IS AN ASSET?

A RESOURCE OWNED BY INDIVIDUAL OR COMPANY THAT GENERATES CASH FLOWS OVER LONG
TERM

ASSETS HAVE ECONOMIC VALUE AND CAN BE EXCHANGED ANS SOLD

FIXED ASSETS=FACTORY,LAND,BUILDING,PLANT AND EQUIPMENT

FACTORY =ASSET

CLASSIFICATION OF ASSETS

1 CONVERTIBILITY -HOW FAST IT CAN GIVE YOU CAH

1.1 CURRENT =WHICH CAN BE CONVERTED INTO CASH IN SHORT TERM

1.2 NON-CURRENT=WHICH CAN BE CASHED INTO LONG TERM

2. PHYSICAL EXISTENCE

2.1 TANGIBLR ASSETS=WHICH CAN YOU TOUCH AND FEEL

2.2 IN TANGIBLE ASSETS=WHICH YOU CANT SEE, TOUCH AND FEEL

3 USAGE
3.1 OPERATINAL ASSETS=ARE THOSE USED IN COMPANY DAY TO DAY OPERATIONS AND
PRODUCTIONS
3.2 NON OPERATIONAL ASSETS = WHICH ARE NOT RELATABLE TO DAILY OPERATIONS WHICH CAN
GIVE VALUE IN LONG TERM

CURRENT NON CURRENT

CAN BE CONVERT IN CAN BE CASH AFTER
CASH UNDER 1 YEAR 1 YEAR (LONG
(SHORT TERM) TERM)

CASH AND DEPOSIT O NO CASH INHAND,FD FIXED O 1.FACTORY,WAREHOUSE

WITH BANK,CASH IN 1.LAND OFFICES
BANKWHICH CAN &BUILDINGS
IMME.CONVERT IN 2 PLANT & 2.PLANTS,
CASH UNDER 1 YEAR EQUIPMENTS MACHINERY,COMPUTER
3 FURN.& S, PRINTERS,
FIXTURES EQUIPMENTS,VEHICLES,
CONST EQIP
 ACCOUNTS YOU SOLD LONG TERM STOCKS
RECIEVABLES(DEBATORS) SOMETHING ON INVEST NO BONDS
NO T CREDIT,NOT GET FD
MONEY IMME BUT MF
YOU WILL GET UNDR VACANT LAND
1 YEAR
SHORT TERM LESS THAN 1 IN TANGIBLE PATENTS
INVESTMENT NO YR,INTERSET,RETUR O TRADEMARKS
NS IN SHORT TERM COPYWRI0GHTS
EX
PHARMA,TECH,MEDIA
SHORT TERM LOANS COMPANY HAS GOOD CANT SEE GOODWILL &
&ADVANCES NO GIVEN LOAN OR WILL&BRAND BRAND CAN PREDICT ITS
GIVEN ADVANCES O FIXED VALUE
WILL RECOVER IN 1
YEAR
PREPAID EXPENSES EG- INSURANCE THAT INTERNET O DOMAINS,WEBSITE
INSURANCE,CONTRACTO PAID IN ADVANCE
RS O NO WHOE BENEFIT YOU
GET UNDR 1 YR
CONTRACTOR PAY
PAID IN ADVANCE
INVENTORY (STOCKS) STOCK OR GOODS PROPRIETARY BLUEPRINTS,SOFTWARE
1.RAW MATERIALS COMPANIES HAVE ITEMS NO DATA
2.WORK IN PROGRESS BECAUSE IT CAN BE BANK,RECORDS,CONTEN
(INVENTORY OF STOCKS CONVERTED IN CASH T ETC,MAPS
DURING
MANUFACTURING
PROCESS)
4 FINISHED GOODS
ITMS ARE COMPLETE
BUT STILL IN
WAREHOUSE NOT
SOLD YET O

OTHER ASSETS

NON CURRENT RECIEVABLES

ACCOUNT RECIEVABLES NOT GET PAID TO ME IN 1 YEAR AND THEY PAID TO ME AFTER 1 YEAR
THEY ARE CONSIDER AS A NON CURRENT NO

FICTITIOUS ASSETS

SOME EXPENSES OR COMPANY OCCURRED SOME LOSS

WHICH IS AMORTIZED FOR SHORT PERIOD OF TIME,FOR EX ADVERTING EXPENSE AS I DON’T

WANT TO SHOW IT ALL IN ONCE IN BALANCE SHEET.WE WAN TO HOW IT IN 10 YR PERIOD OF
TIME SO THE 10 LAKH VALUE OF 10 YEARS CAN BE USE FOR 10 YRS SO COMPANY WANT TO
SHOW IT EVRY YEAR LIKE 1-1 LAKH,THEY ARE LIKE VIRTUAL ASSETS