Current Assets for Architects Architectural firms commonly possess a range of Current Assets for Architects featured on their balance sheet. Current assets encompass items anticipated to be either converted into cash or depleted within a year or the operational cycle, depending on which period is lengthier. Some typical current assets that an architect’s firm… Read More »
Depreciation on current assets Depreciation is not charged on current assets because they are not expected to last for more than one year and are not considered long-term assets. Current assets include items like inventory, accounts receivable, and prepaid expense. Which can expect to use up or sell within a short period of time. As… Read More »
Is depreciation a current liabilities No, Depreciation is a technique in accounting that spreads the cost of a tangible asset across its useful lifespan. It represents the wear and tear, usage, or obsolescence of the asset over time. For more information to visit: https://www.incometax.gov.in Here are the key points to understand about depreciation and its… Read More »
Difference between current assets and current liabilities The measure that reflects the difference between current assets and current liabilities is called working capital. Working capital is calculated by subtracting the total current liability of a company from its total current asset. It is an important metric for businesses to monitor, as it indicates their ability… Read More »
Current assets to proprietor’s fund ratio The current assets to proprietor’s fund ratio is a financial metric used to assess the liquidity and financial health of a business. It measures the relationship between the current assets, which are assets that expect to convert into cash within one year, and the proprietor’s fund, which represents the… Read More »
Types of Assets There are various ways to categorize assets, but here are four commonly recognized types of assets: To visit: https://www.incometax.gov.in 1.Current assets: Current assets are assets that can be converted into cash within one year or the operating cycle of the business, whichever is longer. Examples include cash, accounts receivable, inventory, and prepaid… Read More »
Basic accounting terminologies 1.Assets: Resources owned by a business that has monetary value and are expected to provide future benefits. 2.Liabilities: Obligations of a business to pay debts or other financial obligations. 3.Equity: Equity refers to the ownership interest in a company or property, representing the residual value after all liabilities have been paid… Read More »
What is advance tax Advance tax is the taxes paid in advance on the estimated income of the current financial year. It is a way of paying tax on an ongoing basis rather than waiting until the end of the year. In India, individuals and businesses require to pay advance taxes if their tax liability… Read More »
Capital Exp. Vs. Working Capital: Capital expenditure It refers to the money spent on long-term assets that are expected to provide benefits for more than one accounting period. These assets include property, plant, and equipment (PP&E), intangible assets, and investments. Capital expenditure is recorded on the balance sheet as an asset, and the cost… Read More »
