Current Assets Archives | Wikiaccounting

Inventory Level Control – Definition, Formula, and Example

Inventory level control is referred to as controlling the threshold of inventory to avoid delay in production. It’s the level of inventory that should be available within the warehouse all the time. An important concept of inventory level controls is to create a...

Fictitious Assets: Definition, Example, and List

Current Assets, Financial Statements, Fixed Assets

Definition Fictitious assets can be defined as fake assets. They do not have a physical presence, and hence, these assets are not really assets in the true sense. Still, they are defined as assets that are mainly categorized as huge expenses or losses that occur...

Permanent Current Assets – Definition, Example and How Is It Different from Temporary Current Assets

Current Assets

Definition: Permanent Current Assets can be described as assets that are supposed to be maintained by the business over the course of time in order to ensure that the company is able to run its operations. These assets are considered to be current assets that tend to...

What is a prepayment? (Definition, Explanation, Journal Entry, and Example)

Current Assets

Definition Prepayment is an accounting term referred to the types of expenses not incurred yet but for which payment is made in advance. As the economic benefits from such resources are not taken yet this is why it is classified as an asset rather than an expense and...

Accounting for Consignment Inventory (Definition, Treatment, Journal Entry, and Example)

Inventories

Definition: Consignment inventory represents stock legally owned by one company or business but held by another. Usually, the risks and rewards associated with consignment inventory remain with the company that owns it. Consignment inventory is common in industries...

Accounting for Goods in Transit (Explanation, Examples, Treatment, and Journal Entries)