Which among the following is considered as the most liquid asset?
Which among the following is considered as the most liquid asset?
Cash
Which of the following assets would be considered to be the least liquid quizlet?
Money is the least liquid asset.
Which asset is most liquid quizlet?
Cash is the most liquid of all assets.
Which of the following is considered an act of investing in a physical asset?
Which of the following is considered an act of investing in a physical asset? spending.
Which of the following is classified as a plant asset?
To be classified as a plant asset, an asset must: (1) be tangible, that is, capable of being seen and touched; (2) have a useful service life of more than one year; and (3) be used in business operations rather than held for resale. Common plant assets are buildings, machines, tools, and office equipment.
What is plant on a balance sheet?
A plant asset is an asset with a useful life of more than one year that is used in producing revenues in a business’s operations. Plant assets and the related accumulated depreciation are reported on a company’s balance sheet in the noncurrent asset section entitled property, plant and equipment.
What are the characteristics of plant assets?
Some major characteristics all plant assets share:
- They are used directly in operations or revenue generation.
- They have a useful life longer than one year.
- They are tangible, meaning they have a physical presence.
- They are usually, except for land, subject to depreciation.
What is an example of a current asset?
Common examples of current assets include: Cash and cash equivalents, which might consist of cash accounts, money markets, and certificates of deposit (CDs). Marketable securities, such as equity (stocks) or debt securities (bonds) that are listed on exchanges and can be sold through a broker.
What are the examples of non current assets?
Examples of noncurrent or long-term assets include:
- Cash surrender value of life insurance.
- Bond sinking fund.
- Certain investments in other corporations.
- Plant assets such as land, buildings, equipment, furnishings, vehicles, leasehold improvements.
- Intangible assets such as goodwill, trademarks, mailing lists.
What are the major types of assets?
Common examples of financial assets are:
- Cash and cash equivalents, like a checking or savings account.
- Bonds.
- Stocks.
- Certificates of deposit.
- Mutual funds, also known as money market funds.
- Retirement accounts, like 401(k)s and IRAs.
What type of asset is accounts receivable?
current asset
Is Accounts Receivable a fixed asset?
Current assets include cash, inventory, and accounts receivable. Examples of fixed assets are buildings, real estate, and machinery. In addition, the resource allocation function is concerned with intangible assets such as goodwill, patents, workers, and brand names.
What is accounts receivable journal entry?
Account Receivable is an account created by a company to record the journal entry of credit sales of goods and services, for which the amount has not yet been received by the company. The journal entry is passed by making a debit entry in Account Receivable and corresponding credit entry in Sales Account.
What is the entry for accounts receivable?
To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account. When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is usually a debit.
Where do you record accounts receivable?
Accounts receivable are recorded in the current asset section of the balance sheet. If the business has to wait more than one year to convert AR to cash, it is considered a long-term asset.
How do you record accounts receivable on a balance sheet?
You can find accounts receivable under the ‘current assets’ section on your balance sheet or chart of accounts. Accounts receivable are classified as an asset because they provide value to your company. (In this case, in the form of a future cash payment.)
What is the double entry for accounts receivable?
The double entry is same as in the case of a cash sale, except that a different asset account is debited (i.e. receivable)….Accounting for Receivables.
| Debit | Cash/Bank |
| Credit | Receivable |
