Abstract
Current assets were described in an earlier chapter as those assets which are either expected to be held by an organisation for less than one year, or else those which are normally totally exhausted or consumed during one complete operating cycle of the business. The same asset may be considered to be a current asset in one business but a fixed asset in another; the categorisation will depend on the nature of the business and the purpose for which the asset is held. All businesses will, however, own current assets in some or all of the following categories:
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(i)
stocks and work-in-progress (or inventories);
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(ii)
trade debtors;
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(iii)
cash and liquid assets;
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(iv)
prepaid expenses.
The main focus of attention of this current chapter will be on category (i), stocks and work-in-progress. Chapter 10 will continue this examination and also consider category (iii) cash and liquid assets. Categories (ii), trade debtors and (iv), prepaid expenses have already been considered in Chapters 4 and 6.
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Notes and References
Accounting Standards Committee, Stocks and Work-in-Progress, SSAP 9 (1975) para. 17.
Ibid., para. 3.
Ibid., para. 2.
Ibid., para. 6.
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© 1985 Robin John Limmack
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Limmack, R.J. (1985). Current Assets (I). In: Financial Accounting and Reporting. Palgrave, London. https://doi.org/10.1007/978-1-349-17898-8_9
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DOI: https://doi.org/10.1007/978-1-349-17898-8_9
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