Current assets

essential to the smooth functioning of any business entity is the presence of a particular sources and resources.Without fixed assets, which include buildings and structures, machinery and equipment, vehicles and other means of labor, it can not be a basic manufacturing process of the company.In the absence of these non-current assets, which are the foundation of any enterprise, it would be impossible to implement the planned output.

addition to the normal functioning of the organization needs and working capital.First of all, they are the financial resources.Their presence makes it possible to acquire the necessary extent revolving funds.In turn, the presence of all of these resources will provide a smooth output.

fixed and current assets in need of economical and rational use.This is the primary challenge facing the management of the company.For more effective management of funds held by the organization, it is necessary to know their composition and structure.

Revolving funds of the enterprise

- is the subject of managing resources, which for the time of its use consistently move from cash into productive, and then in the commodity form.Therefore there is a need to separate them into two categories.The first is the production assets.Second - handling funds.The first category of current assets includes in its membership the means of production and labor.In contrast, treatment of foundations are finished products in conjunction with monetary resources.

current assets, in contrast to the non-current, are spent in the same process.Their total price increases the price of the finished product.The material elements that make up revolving funds, in the production process change its natural shape and physical-chemical properties.The use value of these resources is lost with the course of the production cycle.Current assets can be divided into three groups:

- reserves production;

- work in progress and semi-finished own;

- costs that relate to future periods.

Funds treatment consist of finished goods in the warehouse or on the road, as well as funds held in the account or the accounts of accounting in the form of receivables.These resources are used to service the sphere of production.

Revolving funds for the organization of the production process through several stages.Their movement starts with advances sums of money to the purchase of the necessary funds.In the first stage the process is organized logistics tools and objects of labor.In the second stage consumed means of production, creates a finished product.The third stage is characterized by a process of realization of finished goods.Sources of acquisition of current assets can serve as their own or borrowed funds.

effectively used revolving funds are an important criterion in the stable functioning of a business entity.This can be achieved by rational use of resources available to the enterprise.If current assets are used efficiently, it freed up resources contribute to the strengthening of the financial entity.For this process you need to increase the material interest of the collective enterprise in raising the efficiency of the entire production.