Explanation: Cash is the company’s current assets holding for small expenses in the office or for a certain large amount of cash transactions. For example, the company holds petty cash for making payments on small office expenses. Sometimes, the company might keep a large amount of cash for making payments to certain suppliers that accept […]
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Your success in business does not just depend only on your ability to make sales profits. You have to also learn how to properly manage and safeguard your company assets; they are what makes the profits for you. Company assets are the valuable properties that your company owns. They include tangible physical business properties like
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Other current assets are a type of categorization of assets. These are residual current assets that have not been specified by the company or regulations or do not meet the criteria of being classified separately. They are referred to as they are uncommon and insignificant, like the current assets like cash, accounts receivables, and prepaid
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Businesses that deal with physical products will have inventory at some point during their operations if not always. Inventory is a term used to describe all tangible materials that businesses use to manufacture products for sale. For businesses, it is one of the most important assets as it is the main reason for the revenues
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Inventory is a current asset appearing in the balance sheet under the head current asset as well as a major item of the income statement. Inventories are goods held for sale in the ordinary course of business that can help the management of the company to control and improve the business profitability and operate efficiently.
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Financial Statements: According to international accounting standards and generally accepted accounting principles, every entity is supposed to prepare annual financial statements, including the following: These statements or reports clearly explain how the business is performing financially so far. It includes and reports every transaction that has occurred throughout the year. After preparing financial statements, the
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Introduction Business is the asset of every businessman and businesswoman, and the assets of the business are fixed assets and inventory. At the start of business studies, most students are confused about fixed assets and inventories. In actual business, there are clear differences in both of the terminologies. Here are the definitions and the differences
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No one can deny the importance of assets in the business world. Because assets create profit and also grow the business from a low to a high level. Assets have different types, but the most important are current and fixed assets. Fixed assets work for a long period of time, and current assets work in
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Introduction: Inventory or stock-in-trade is the goods or commodities held by an entity for the purpose of resale or trade. At the end of an accounting year, companies usually have unsold goods in their warehouses which are referred to as closing inventory or closing stock-in-trade. This item is not reported in the income statement, but
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Overview: There are many audit procedures and approaches that auditors could use to perform during their detailed testing of the inventories report by management in the financial statements. Before going into detail on the procedure, it is good to start with the overview of inventories first. Inventories are the current assets that reporting in the
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