Difference Between Current and Non-Current... (1 Viewer)

[sk8ie_boi]

When we are given an balance sheet ..

Then they may ask you to find the current ratio, but first you need to know the current assets and current liabilities. These are difficult to tell, so can you list the current assets and non-current assets and same for liabilities please.

E.g.

Current Assets: Cash
Non-Current Assets: Real Estate

 

[hYperTrOphY]

Current Assets
Cash
Accounts receivables
Inventory

Non-current assets
Equipment
Motor Vehicles
Land/Buildings

Current Liabilities
Accounts payable
Overdraft

Non-current liabilities
Bank Loan
Mortagage

 

[Jexi]

Current Assets/Liabilities are basically things 12 months or under. Non-Currents are over 12 months.

So basically say a Machinery would not be Current because its not going to rot in 12 months time or less. A Mortgage or loan is usually Non-Current however sometimes they may say that the loan is maturing in eg. 6 months time which means the loan is now Current Liability.

 

[sk8ie_boi]

hehe yeah .. fanx .. i was just looking up the text books and was explaining the difference between current and non current .. 12months more or less .. yeah .. =D