Which of the following is not an example of fixed assets?
A) Plant and machinery
B) Buildings
C) Royalty
D) Furniture
Answers
ANSWER
Bank balance is an amount which is lying in firm's bank account. It is as good as cash balance. Bank balance is part of current assets.
Fixed Assets are long term tangible assets which consists of land, building, machinery etc.
Current assets are short term assets which can be converted in to cash on need basis. Current assets may consist of inventory, debtors, bills receivables, cash on hand, bank balance etc.
Answer:
Plant and machinery, Buildings, and Furniture are Fixed Assets
Royalty/ bank balance is Current assets
Explanation:
A bank balance is an associate quantity that is lying in a firm's checking account. it's pretty much as good as a money balance. A bank balance is a component of current assets.
Fixed Assets area unit future tangible assets that consist of land, building, machinery, etc.
Current assets area unit short-term assets which may be reborn into money on would like basis. Current assets could comprise inventory, debtors, bill assets, money reachable, bank balance, etc.
Fixed Assets
A fixed quality, or outdated quality, generally is AN actual, physical item that an organization buys and uses to form merchandise or service that it then sells to get revenue. as an example, machinery, a building, or a truck that is concerned during a company's operations would be thought-about a hard and fast quality. fastened assets are long assets, which means they need a helpful life on the far side for one year. whereas tangible quality is the most form of fastened asset, intangible assets also can be fastened assets.
Current assets
Contrary to an outdated, fastened quality, a current quality is AN quality that may be used or sold within one year. Current assets are often born again to money simply to pay current liabilities. Together, current assets and current liabilities provide investors with a plan of a company's short-run liquidity. samples of current assets are money, money equivalents, assets, and inventory.
Hence Royalty is not an example of fixed assets.
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