GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Only fixed assets
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Only current assets
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Fixed and current assets
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None of the above
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Detailed explanation-1: -Current assets are short-term assets that are typically used up in less than one year. Current assets are used in the day-to-day operations of a business to keep it running. Fixed assets are long-term, physical assets, such as property, plant, and equipment (PP&E). Fixed assets have a useful life of more than one year.
Detailed explanation-2: -Assets may be classified as fixed and current account depending on the nature. Assets which are having a longer useful life and gives the benefits to the business in coming years too are considered as fixed assets.
Detailed explanation-3: -Current assets are the assets that a business owns and expects to use or turn into cash within a year while fixed assets are resources for long term use. Both current and fixed assets are reported on the balance sheet with fixed assets often listed as property, plant and equipment (PPE).
Detailed explanation-4: -Fixed assets include property, plant, and equipment (PP&E) and are recorded on the balance sheet with that classification. While a company may also possess long-term intangible assets, such as a patent, tangible assets normally are the primary type of fixed asset.