current assets refers to the cash and other assets that are expected to be converted to cash within a year . name any two currenrt assets other than cash and bank.
Answers
Answer:
Current assets are short-term, liquid assets that are expected to be converted to cash within one fiscal year. These assets include cash and cash equivalents, marketable securities, accounts receivable, inventory and supplies, prepaid expenses, and other liquid assets.
Explanation:
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ANSWER :
Current Assets refers to the cash and other assets that are expected to be converted to cash within a year. In other words, current assets are those assets which are are made or acquired and help for a short period of time with a view to reselling them at a profit in the ordinary course of business. These assets are meant for sale or can be converted into cash with in one year. As such, current assets are also termed as short lived or active or floating assets.
❍ Any two current assets other than Cash and Bank are :-
- [1] Debtors : Debtors means those persons or firms to whom goods have been sold or services have been rendered on credit and the payment has not been received yet from them. Debtors can be converted into cash within a short period and hence, it is considered as a Current Asset.
- [2] Bills Receivable : When goods are sold on credit, a bill of exchange payable after some time may be drawn by the creditor (seller) on the debtor (purchaser). This bill is accepted by the debtor and after acceptance, it is returned to the creditor. To the creditor, the bill is termed as Bills Receivable. It is also converted into cash within a peiod of one year and considered as a Current Asset.