U1, AOS 1: KK8 - Current & Non-Current Flashcards
What is a current asset?
A present economic resource controlled by the entity (as a result of past events) that is reasonably expected to be converted to cash, sold or consumed within the next 12 months after the end of the reporting period.
What is a current liability?
A present obligation of the entity (arising from past events) that are expected to be settled with a transfer of an economic resource within the next 12 months after the end of the reporting period.
What is a non-current asset?
A present economic resource controlled by the entity (as a result of past events) that is not held for resale and is reasonably expected to be used for more than the next 12 months after the end of the reporting period.
What is a non-current liability?
An obligation of the entity (arising from past events) that is not expected to be settled with a transfer of an economic resource within the next 12 months after the end of the reporting period.
Which element?
(A,L or OE & Current or Non-Current)
Bank
Current Asset
Which element?
(A,L or OE & Current or Non-Current)
Inventory
Current Asset
Which element?
(A,L or OE & Current or Non-Current)
Accounts Payable
Current Liability
Which element?
(A,L or OE & Current or Non-Current)
Loan (due in 12 months)
Current Liability
Which element?
(A,L or OE & Current or Non-Current)
Accounts Receivable
Current Asset
Which element?
(A,L or OE & Current or Non-Current)
Equipment
Non-current Asset
Which element?
(A,L or OE & Current or Non-Current)
Premesis
Non-current asset
Which element?
(A,L or OE & Current or Non-Current)
Mortgage
Both - what would be paid in the current period is a current liability, the remainder would be non-current.
Which element?
(A,L or OE & Current or Non-Current)
Cash at Bank
Current asset
Which element?
(A,L or OE & Current or Non-Current)
Vehicle
Non-current asset
