Basic Concepts Of Accounting
Basic Concepts Of Accounting..!! Assets:- Any item of economic value owned by an individual or organization, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. According to accounting equation Assets = Liabilities + Capital (where Capital for a corporation equals Owner's Equity) *From an accounting perspective, assets are divided into the following categories: 1. Current assets (cash and other liquid items). 2. Long-term assets (real estate, plant, equipment). 3. Prepaid and deferred assets (expenditures for future costs suc...
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