Current assets were enterprises' funds, which are reflected in the balance sheet assets.Current assets - a concept that characterizes the aggregate wealth of the enterprise, which serve industrial and commercial activities and is entirely consumed in one production and the economic cycle.Working capital is classified according to several criteria.
Current assets include operating assets, assets in circulation and others.Productive Assets - the raw material, supplies, semi-finished products, spare parts, packaging and so on.They also include the costs of future periods and work in progress.Assets in circulation - a tool that has already been invested into the prepared, but still not unloaded products, accounts receivable, as well as surplus funds in the accounts and in hand.Other current assets - the cost of damaged, missing, but not yet written off goods and materials, the amount of excise duties, which are subsequently to be deducted, and more.
Expiring operation emit a constant and a variable proportion of current assets.Permanent part - a share that has no dependence on seasonal and various other shocks to the production activities of the company and is not connected with the stockpiling of inventories of seasonal storage.This irreducible minimum needed for the smooth functioning of the enterprise.The variable share - is part of the assets, which varies according to seasonal fluctuations in the volume of production and sales, as well as the need to create seasonal reserves of goods and materials.
The level of liquidity is isolated:
- Current assets, which are absolutely liquid.These include assets that do not need to implement and provides a ready means of payment - money.
- highly liquid current assets, which can be smoothly and quickly (within one month) to translate into money without serious loss of market value.As a rule, short-term investments, accounts receivable and more.
- Srednelikvidnye assets, which is possible without appreciable loss convert money in up to six months.These include finished products and ordinary receivables.
- Slabolikvidnye Assets that may be converted into money without loss of value after a large period of time (more than six months).This is a work in progress, semi-finished products and raw materials.
- Illiquid Assets - is something that can not be converted into money on their own.They are subject to the implementation of only a part of the whole complex of the property.It costs in future periods, as well as uncollectible receivables, and more.
By the nature of the origin of financial resources allocate gross and net assets.Gross characterize the entire volume of assets formed at the expense of debt and equity.Net assets formed at the expense of long-term debt and equity.They represent the difference between the sum of current assets and current liabilities.
