Current Assets - Detailed Review and Explanation
Assets are classified as tangible and intangible accounts which have a future economic benefit. We are covering current assets in this video which are assets that are cash or can/will be converted into cash within a year. They are essential for a company's day-to-day operations and liquidity. WATCH THIS NEXT: • Stockholders Equity - Detailed Review and ...
📌 5 examples on current assets included on the balance sheet:
✅ Cash: bank cash balances or any cash account that holds the company's currency
✅ Accounts Receivable: goods or services incurred and earned which haven't been collected as of the balance sheet date
✅ Prepaids: a expense paid in advance by a company where the good or service has a useful life beyond the balance sheet date
✅Trading Securities: bonds and stocks which will be sold within a year
✅ Inventory: parts (such as raw materials) or finished products (the product/item for sale)
Supporting videos:
Rules for Setting up your Accounting System's Chart of Accounts
• Chart of Accounts Explained: Best Practice...
Accounting for Trading Securities (GAAP Accounting for Investments)
• Accounting for Trading Securities (GAAP Ac...
Accounting 101: What are Prepaid Expenses?
• Prepaid Expenses Guide: Definition, Explan...
Accounting 101: How to Account for Prepaid Expenses
• Prepaid Expenses Explained: Balance Sheet ...
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0:00 Introduction
0:14 Cash
1:26 Accounts Receivable
2:29 Prepaid Expenses
3:29 Trading Securities
4:12 Inventory