The two types of assets, by our small business accounting services in Melbourne
Assets are an important element on the balance sheet and enable one to determine the liquidity in an organisation. The two types of assets are called current assets and non-current assets, containing different properties which our small business accounting services in Melbourne also segment into tangible or intangible assets.
Current assets are items that are expected to be consumed within one year. Our small business accountants in Southbank commonly include the following items as current assets in their balance sheet;
- Cash and cash equivalents
Non-current assets are expected to continue to be productive for a business for over one year. The main non-current assets are;
- Tangible fixed assets
Our small business accountants in Melbourne CBD also classify assets as either tangible or intangible assets. The difference between intangible and tangible is that tangible assets have a physical substance, whilst intangible assets do not. Examples of tangible assets include vehicles, buildings and inventory. On the other hand, intangible assets include copyrights, patents and trademarks.
For more information on what you can classify as an asset, please contact our small business accounting services in Melbourne today.