Question

15) Name the accounting concept which is applied in classifying assets as Current Assets and Fixed Assets.
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Answer 1

Step-by-step explanation:

Accrual accounting: See “accounting methods.” Assets (fixed and current): Current assets are assets that will be used within one year. For example, cash, inventory, and accounts receivable (see above). Fixed assets (non-current) may provide benefits to a company for more than one year—for example, land and machinery.

Answer 2

Answer:

Accrual accounting: See “accounting methods.” Assets (fixed and current): Current assets are assets that will be used within one year. For example, cash, inventory, and accounts receivable (see above). Fixed assets (non-current) may provide benefits to a company for more than one year—for example, land and machinery.