What is a continuous asset?

Assets are sources that do business that can be converted to cash. For the purposes of accounting, they are divided into two groups on the basis of when the company expects to be transferred or sold. Current or short -term assets are expected to be sold within one year. It is expected that an immediate asset, also known as a long -term asset, is expected before converting. In fact, the unprecedented asset may not be sold for cash, because unprecedented assets are either things that business needs for common operations or intangible items such as brand names, patents and copyright.

Unnatural assets can be divided into three main categories: property, plant and device (PP & E); long -term investment; and intangible assets. Assets, plant and equipment for equipment are things such as buildings, furniture and factory equipment - items used by the company for operation. These unprecedented assets must be depreciated because they wear and eventually need to be neededexchange. Current PP & E is represented by its purchase price of minus depreciation. They are not categorized as short -term assets because they cannot be easily converted to cash, as with a loan, or is the intention to hold them for a long time, as with stocks and bonds. The actual value of this type of non -coming asset may change daily, so the value recorded in accounting books often does not correspond to the actual value.

Intangible assets are generally harder to quantify. There is no fixed purchase price as with PP & E assets or a definitive value that exists with long -term investments. These disproportionate assets cannot be touched, visible or even inventing because they do not physically exist. Intangible assets consist of items such as business secrets, copyright and general knowledge and MDASH ;; All items that add value to the company.

For example, assume an entrepreneur wants to startIT operation of mining and is looking for the purchase of one of two companies: versatile mining Joe and Sam's belts mining. Joe's has no experience with belt extraction while that's all that Sam does. This would mean that Sam's has an intangible asset in the knowledge of belts and all other things are the same, it would be more valuable for entrepreneurs.

The most common type of intangible, continuous asset is good will. It represents the reputation of the company and can have significant value. It can include everything from the company's value to the morale of employees and how everyone perceives it from customers to sellers.

The surprise of the asset is a commitment. This is something the business owes. Like assets can be short or long -term. Unnatural obligations are often bank loans or postponed tax payments.