ACTIVE CIRCULANT

PAOLA ANDREA SANCHEZ MANJARRES

ANDRES FELIPE PIMENTEL
JULIETH FORERO CARRILLO

FINANCIAL CASES
UNIVERSITY CORPORATION OF HUILA "CORHUILA"
NEIVA, 2018
 TABLE OF CONTENTS

Introduction ……………………………….
Goals ……………………………….
Current assets ……………………………….
Current active exercise …………………………………
Conclusión ………………………………………..

INTRODUCTION

With the passage of time, accounting has been a tool of help for men when it comes to
understanding and creating their finances. Then we will talk and explain in detail what is a
current asset, what is its function and its objectives inside and outside the company.
 OBJECTIVES

SPECIFIC

Understand, know and perform how an active circulant is used

GENERAL

• To use a current asset

• A current asset in the company is important

CIRCULATING ASSET

Current assets or current assets are the liquid assets at the time of the close of an exercise or
that are convertible into money within a period of less than twelve months. This type of
asset is in continuous operation and can be sold, transformed, used, converted into cash or
delivered as payment in any normal operation. Cash in banks and cash, marketable
securities, accounts receivable, raw materials and items in the process of manufacturing are
some of the components of current assets. The concept, therefore, covers the treasury, the
convertible or consumable goods in the short term.

Current assets are assets and rights of a company that are characterized by their liquidity.
This means that companies dispose of these assets in a liquid way at the moment or that
they can do so within the normal production cycle. The greater the amount of liquid assets,
the greater the liquidity. It consists of asset items that are monetized - they become liquid -
within the business cycle of the company:
- Stocks (acquired to be transformed and sold, in exchange for liquidity).
- Customers and debtors (they are charged in a few weeks or months).
- Investments and short-term credits (with expiration within the exploitation cycle).
- Cash (bank and boxes, which is already directly liquid).

HOW TO INVEST IN A CIRCULANT ACTIVE

In order to know how much money is necessary to invest in current assets, first all the
needs of a company in its fixed assets must be evaluated, that is, in the total of tangible or
intangible assets that are included in the balance sheets and that have been created or
acquired for long-term use. Once this point is reached, it is possible to face the expenses to
use these resources.

The basis of the success of a company lies in responsible management, this means
perseverance and careful attention to movements, since a small oversight can quickly
become an avalanche.

CONCLUSION

To conclude, we must be clear that the basis and key of a company, whether large or small,
is how the current assets are handled, because with this we know with what flow of money
they count.