12472020 ‘Assets | Types of Assos | Classifiations | Explanation | Examples = aH Men Home Elements of the financial Statements Home > Eetements of Financial Statements > Assets Elements of the financial statements include Assets, Liabilities, Equity, Income & Expenses. The first three elements relate to the statement of financial position whereas the latter two relate to the income statement. The first three elements relate to the statement of financial position while the latter two relate to income statements. Assets Definition Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity (IASB Framework). Explanation In simple words, asset is something which a business owns or controls to benefit from its use in some way. It may be something which directly generates revenue for the entity (e.g. a machine, inventory) or it may be something which supports the primary operations of the organization (e.g. office building). Classification Assets may be classified into Current and Non-Current. The distinction is made on the basis of time period in which the economic benefits from the asset will flow to the entity. Current Assets are ones that an enlity expects to use within one-year time from the reporting date Non Current Assets are those whose benefits are expected to last more than one year from the reporting date. Types and Examples Following are the most common types of Assets and their Classification along with the economic benefits derived from those assets Machine Non-current Used for the production of goods for sale to customer. Office Building Non-current Provides space to employees for administering company Vehicle Non-current Used in the transportation of company products and also htps:aecounting-simpliied.comelaments-tinancia-tatoments Mini 1812472020 ‘Assets | Types of Assos | Classifiations | Explanation | Examples Menu Receivables Current Will eventually result in inflow of cash. «Next: Recognition Criteria of Assets) Select a topic Elements of the financial Statements Vv Recognition Criteria of A > Liabilities, > Recognition Criteria of Liabilities > Equity > Income > > More Topics > Accounting-Simplified.com Comment Policy We welcome relevant and precise comments and questions. obso)) posted here may be shared on other platforms. 14Comments Accounting-Simplified.com —@ Privacy Policy @ Login ~ Oannmmnnd ane Mens Fon Sart hy Rect = htpssaecounting simplified comlaments-financia-statoments Mini Home 2612472020 Menu wv = hitpsuaccounting-simpliied com ‘Assets | Types of Assos | Classifiations | Explanation | Examples a Home Join me aiscussion... Loc INWiTH ‘OR SIGN UP WITH Disaus (2) Name Mony Karona +7 years ago «edited In free time, everyone who leams accounting should check accounting lessons on internet. | think itis better than spending a lot, of time playing a game or using a drug. 72.0 |v + Reply « Share @ _DeviaRue + Hory Karona 7 years ago «eats <=> That's your opinion right there. In my free time, i would rather play a game than eject myself into a rapidly boring session of forcing myself to comprehend accounting, 16.0 | v2» Reply = Share > @ _rensetbrainz + Mony karona +6 years ago <=> Ima CPA. | did drugs and video games all in college. Itis balance. Not complete replacement. 7A |v + Reply + Share> Fathima Sumaiya + 6 years ago * edited Some people said accounting is very difficult. Is it really? 12. | v = Reply » Share» @ _Revan 4 Fatima sumsiya «6 years ago <= Depending on your lecturer really. | find it difficult if the lecturer did not teach me the basics and immediately rushed me to solve a question, 7A | © + Reply + Share> @ _sarshah Arian + Fathima Sumaiya «6 years ago + edted Fatima jan. | am not sure if tis true becuase | am not a regular student of accounting, My friend teaches me accounting in free time and | can understand the lessons very easily, A | = Reply » Share» Mahebub Alom Biswas +7 years ago «edited It's really helpful 2 ents--inanca-stalements hen 3812472020 z hitpsuiaccounting-simpliied com ‘Assets | Types of Assos | Classifiations | Explanation | Examples thanks a lot! 3.4 | ¥ + Reply > Share» Liyana +7 years ago «edited | got a lot of information, Thank you. 2A |v + Reply Share> Kuya Samu + 7 years ago edited Nice. Itis really helpful 1.4 | ¥ © Reply» Share > bei +7 years ago thanks so much! 1A |v © Reply + Share» PreferNottoSay «5 years ago edited Unfortunately | did not personally find this article to be very descriptive and detailed. In the classification of assets, there are fixed assets, depreciable assets and current assets. Fixed assets are long term pieces of property that are owned and used for the production of income. Fixtures and fittings Office supplies Depreciable assets are assets that lose value over time. Office machines Motor vehicles Current assets are cash and any asset that ‘can quickly be turned into cash Cash rens-offinanca-stalements him Home 4612472020 ‘Assets | Types of Assos | Classifiations | Explanation | Examples lll > Home Farooqui +4 years ago + edited Hi, fa company is setting up its new office at a rented place and as a tenant the company is bearing electric wiring expense. In this case is, electrical wiring an expense for the tenant company or an asset? Please answer in a simple way as I'm new to accounting, A | ¥ 4+ Reply + Share» @ LaF Fervoaui 8 year ago = Hi, good enough you mentioned assets and expenses not assets and liabilities, the wiring is asset but the cost of wiring is an ‘expense, because with accounting two accounts must always Newsletter Join our free newsletter for the atest updates, dis Your email Subscribe ions, quizzes & more. Accounting Simplified Accounting-Simpliied.com |All ight reserved 2017 ‘About Contact Disclaimer Privacy Sitemap Copyright, ‘Accounting for Share Capital ‘Accounting for Sales Accounting for Purchases ‘Accounting for Cash Transactions htps:aecounting-simpliied.comielaments-financia-tatoments Mini 56