Q4Explain following accounting terms
(1) Creditor(2) Fixed Assets (3) Capital
(4)Current Liabilities
Answers
Explanation:
Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle. ... Examples of current liabilities include accounts payable, short-term debt, dividends, and notes payable as well as income taxes owed.
Capital is a term for financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources. ... Capital assets can include cash, cash equivalents, and marketable securities as well as manufacturing equipment, production facilities, and storage facilities
Fixed assets are long-term assets that a company has purchased and is using for the production of its goods and services. ... Fixed assets include property, plant, and equipment (PP&E) and are recorded on the balance sheet. Fixed assets are also referred to as tangible assets, meaning they're physical assets
A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future. ... Creditors can be classified as either personal or real. People who loan money to friends or family are personal creditors.