Current assets are that a company expects to convert to cash or use up within one year. For most businesses the cutoff for classification as current assets is one year from the balance sheet date. For example, accounts receivable are current assets because the company will collect them and covert them to cash within one year. A supply is a current asset because the company expects to use it up in operations within one year.
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- Paid-in capital
Paid-in capital is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
- Prior period adjustment
The correction of an error in previously issued financial statements is known as a prior period adjustment. The company makes the correction directly...
- Cost-volume-profit (CVP) analysis
Cost-volume-profit (CVP) analysis is the study of the effects of changes in costs and volume on a company’s profits. CVP analysis is important in profit planning.
- Total cost of work in process
Total cost of work in process is the cost of the beginning work in process plus total manufacturing costs for the current period.
A check is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient. There are three parties to a check:
- Return on investment (ROI)
The primary basis for evaluating the performance of a manager of an investment center is return on investment (ROI) which refers to a measure of management’s...
- Voucher register & Check register
An employee in accounts payable records the voucher which in a journal called a voucher register and files it according to the date on which it is to be paid.