Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Graduate School (https://www.askmehelpdesk.com/forumdisplay.php?f=142)
-   -   Current asset and current liability (https://www.askmehelpdesk.com/showthread.php?t=652711)

  • Apr 20, 2012, 10:20 AM
    hayatienor
    Current asset and current liability
    What is the advantages of current asset more than current liabilities?
  • Apr 20, 2012, 11:03 AM
    pready
    A current asset is something you own or have a right to like Accounts Receivable or inventory. Accounts receivable is where a customer owes you money and Inventory is something that you sell for money.

    A current liability is where you owe someone else or have to provide goods or services to a customer like Accounts Payable and Unearned Revenue. Accounts Payable is where you owe someone money like for utilities or a purchase you made on account. Unearned Revenue is where a customer paid for goods to be delivered at a later time or for services to be performed by you at a later time.

    The ultimate goal of a current asset is to receive money within one year or one business cycle, while a current liability is where you will pay money within one year or business cycle.

  • All times are GMT -7. The time now is 03:23 AM.