Current Assets

Are Inventories Current Assets? (With Detail Explanation)

Definition: Inventories are classed as current assets in the entity’s balance sheet. They normally include a group of liquid assets including raw materials, work in progress, and finished goods which are expected to be converted into cash or cash equivalent within 12 months. The three main common examples of the entity’s financial statements are income …

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Current Assets: Definition, Classification, Calculation, and Example

Definition: Current Assets refer to an entity’s assets that could be converted to or used within a period of less than one year. They are the group of liquid assets that are expected to be used, consumed, or converted into cash within 12 months from reporting date. In the balance sheet, these groups of assets …

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Inventory Turnover Ratio: Definition, Using, Formula and Example

Inventory Turnover Ratio: Inventory Turnover Ratio is one of the Financial Ratios used to assess how often the inventories are replacing and sales performance over a specific period of time. This ratio is normally used as a tool to assess how well the inbound and outbound system of inventories are, based on the strong relationship …

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Just-In-Time: History, Objective, Productions, and Purchasing

History of Just In Time (JIT): Just In Time, called TOYOTA Manufacturing Production System, is part of the Lean Manufacturing Production System. There is a long story before becoming the Just-In-Time that we know today. Eli Whitney first initiated the Just In Time concept in 1799, who had a large contract with the U.S. Army at …

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