Current and Noncurrent Liabilities What are Current liabilities The passive current or liabilities are the liabilities side containing the short – term obligations a company, i.e, debts, and obligations that have less than one year. Therefore, it is also known as demandable in the short term. It is found in the balance sheet of a company and in turn within the liability, […]
What are the Current and NonCurrent Assets
Current and NonCurrent Assets It important to distinguish between current and noncurrent assets and I will explain in this article. Current Assets Current assets, also called current or liquid assets, are the assets of a company that can be liquid (converted into money ) in less than twelve months. Such as, for example, bank money, stocks, and financial investments. In addition, we can […]
What are Tangible and Intangible Assets?
What is Tangible Asset A tangible asset has a physical form, that is, they are tangible assets that can be seen and touched. Tangible assets in the business environment include both non-current assets such as machinery, buildings, and land, vehicles, etc.) and current assets such as inventory. The opposite of a tangible asset is an intangible asset. A tangible asset, like all assets, must […]
The Importance of Debit and Credit in the Bookkeeping System
Importance of Debit and Credit The terms debit and credit are two fundamentally important terms of accounting. The understanding of debit and credit is a basic prerequisite for being able to deal practically with booking on accounts and dealing with accounts. The debit and credit are the two sides of the account. The easiest way […]
Importance of the Cash Flow Statement to a business
Cash Flow Statement Cash flow statement One of the most important financial statements for a business is the Cash Flow Statement. However, the cash flow statement is often overlooked by many small businesses, as they concentrate on the income statement and the balance sheet. The cash flow statement provides insight to the cash position of the […]