Basics of Accounting Term Paper by orise

Basics of Accounting
A brief look at the basics of business accounting and financial statements.
# 153368 | 801 words | 1 source | APA | 2013 | KE
Published on May 26, 2013 in Business (Accounting) , Accounting (General)


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Description:

The paper explains what current assets are and their significance to the business and looks at non-current assets and how they are exploited rather than expended. The paper discusses the difference between a current and non-current asset and outlines both the order of liquidity concept and the order of liquidity in the balance sheet.

Outline:
Current Assets
Non Current Assets
Differences between Current and Noncurrent Assets
Order of Liquidity
Order of Liquidity in the Balance Sheet

From the Paper:

"Accounting is the methodical recording, analysis, and recording of financial contracts of a business. Accounting examines things like assets where it splits them into current and noncurrent assets. Asset refers to anything, which the organization possesses. Current assets refer to the balance sheet account that symbolizes the worth of all assets. These assets must be sensibly anticipated being changed into cash in a period of 1 year, in the normal course of business. Examples of current chattels comprise of accounts receivable, inventory, cash, marketable securities, and prepaid expense among others (Eisen, 2000). Note that all these are liquid chattels that can be transformed to cash. In individual finance, current assets are termed as items that an individual can easily change to cash, use to pay exceptional amount overdue, and cover liabilities without selling fixed assets. Current assets are significant to business because they are employed in funding daily operations within the organization and pay ongoing expenses. Current assets are normally displayed on the pinnacle partly of the balance sheet.
"Non Current Assets: This refers to an organization's long-term investments, with knowledge that the complete value will not be recognized within the accounting year. These assets are exploited other than expensed, meaning that the organization distributes the price of the asset over the numeral of years for which the asset will be employed."

Sample of Sources Used:

  • Eisen, P. J. (2000). Accounting. Hauppauge, N.Y: Barron's Educational Series.

Cite this Term Paper:

APA Format

Basics of Accounting (2013, May 26) Retrieved July 20, 2019, from https://www.academon.com/term-paper/basics-of-accounting-153368/

MLA Format

"Basics of Accounting" 26 May 2013. Web. 20 July. 2019. <https://www.academon.com/term-paper/basics-of-accounting-153368/>

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