Pestel Analysis on Water Industry
Assets in accounting
In the financial accounting sense of the term, it is not necessary to be able to legally enforce the asset's benefit for qualifying a resource as being an asset, provided the entity can control its use by other means.
The accounting equation relates assets, liabilities, and owner's equity:
Assets = Liabilities + Stockholder's Equity (Owner's Equity)
Assets = liabilities + Capital liabilities = Assets - Capital
Capital = Assets - liabilities
That is, the total value of a firms Assets are always equal to the combined value of its "equity" and "liabilities."
The accounting equation is the mathematical structure of the balance sheet.
Assets are listed on the balance sheet. In a company's balance sheet certain divisions are required by generally accepted accounting principles (GAAP), which vary from country to country.[8]Assets can be divided into e.g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory.
Assets are formally controlled and managed within larger organizations via the use of asset tracking tools. These monitor the purchasing, upgrading, servicing, licensing, disposal etc., of both physical and non-physical assets.
[edit]Current assets
Main article: Current asset
Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. These assets are continually turned over in the course of a business during normal business activity. There are 5 major items included into current assets: 1. Cash and cash equivalents — it is the most liquid asset, which includes currency, deposit accounts, and negotiable instruments (e.g., money orders, cheque, bank drafts). 2. Short-term investments — include securities bought and held for sale in the near future to generate income on short-term price differences (trading securities). 3. Receivables — usually
In the financial accounting sense of the term, it is not necessary to be able to legally enforce the asset's benefit for qualifying a resource as being an asset, provided the entity can control its use by other means.
The accounting equation relates assets, liabilities, and owner's equity:
Assets = Liabilities + Stockholder's Equity (Owner's Equity)
Assets = liabilities + Capital liabilities = Assets - Capital
Capital = Assets - liabilities
That is, the total value of a firms Assets are always equal to the combined value of its "equity" and "liabilities."
The accounting equation is the mathematical structure of the balance sheet.
Assets are listed on the balance sheet. In a company's balance sheet certain divisions are required by generally accepted accounting principles (GAAP), which vary from country to country.[8]Assets can be divided into e.g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory.
Assets are formally controlled and managed within larger organizations via the use of asset tracking tools. These monitor the purchasing, upgrading, servicing, licensing, disposal etc., of both physical and non-physical assets.
[edit]Current assets
Main article: Current asset
Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. These assets are continually turned over in the course of a business during normal business activity. There are 5 major items included into current assets: 1. Cash and cash equivalents — it is the most liquid asset, which includes currency, deposit accounts, and negotiable instruments (e.g., money orders, cheque, bank drafts). 2. Short-term investments — include securities bought and held for sale in the near future to generate income on short-term price differences (trading securities). 3. Receivables — usually