Section 1,unit 1,lesson 4 Assets

Question 1

Assets are important concepts in accounting.

Answer 1

Generally means something a business owns.

Question 2

Can be divided into:

Answer 2

Current assets

Non current assets

Question 3

Current assets - assets that are generally expected to be used up, sold or collected in a short period of time i.e 12months

Answer 3

Examples include
Inventory
Money owed by customers (also known as trade receivables)
Money in the bank
Cash.

Question 4

Inventory

Answer 4

Consists of items that are bought for resale. Includes raw materials, work in progress items and finished goods.

Question 5

Non current assets- assets that the business expects to continue to use for a no. of years

Answer 5

examples include:
equipment
vehicles
furniture
buildings