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Accounting: current vs noncurrent So how should the different types of assets be financed? With own funds? With longterm debts? Well, illiquid assets, that is, noncurrent assets, should be financed with permanent resources, that is, with longterm debts or with the capital contributed by the partners. On the other hand, liquid assets, that is, current assets inventories, customer balances, etc. could be financed with shortterm debts. TEST How much do you know about business? Tools, concepts, business methodologies... Test yourself with this test! it won't take you more than minutes Take the test! FREE classes.
What would it be like to take one of our master's degrees? The Belarus WhatsApp Number best thing is that you try it yourself with these totally FREE classes! Sign up and live the experience of being part of the business school that has put the traditional educational model in check. See free classes! Think about it, noncurrent assets, which are not very liquid, should not be financed by shortterm loans because by the time that loan matures, the asset will not have yet generated the treasury. That is why they should be financed with permanent resources. While current assets are quite liquid assets that will generate cash in a short period of time.
That is why we can finance them with current liabilities. The fundamental equation of the balance sheet The fundamental equation is what we know as a balance in accounting and whereby the assets must be equal to the liabilities plus the net worth. Always. That is, the block on the right must be equal to the block on the left and vice versa. Because really the two sides of the balance sheet represent the same thing but seen from a different perspective: where the funds have come from and where we have allocated them. This balance implies that every time you make an entry in one account you will have to make another one in another account to maintain it. It is what is known as a double entry system because every movement.
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發表於 2024-3-7 17:40:15