Classification of Assets and Liabilities

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Classification of Assets:
1) Fixed Assets : A long term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year such as manufacturing equipments also called plants. 2) Current Assets : Current assets are those assets which are held for sale or to be converted into cash after some time. 3) Contingent Assets: A contingent asset is one which comes into existence upon the happening of a certain event. If that event happens the asset becomes available, otherwise not. 4) Tangible Assets: Assets that have a physical existence, or give the holders definite set of financial rights are classified as tangible assets, An asset that has a physical form such as machinery, buildings and land. Tangible assets are depreciated. 5) Intangible assets: Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. Intangible assets are amortized. 6) Liquid Assets: Liquid assets are those assets which are with us in cash or easily converted into cash. 7) Long term Assets : Any asset that a company or individual holds that will generate revenue for more than one year is considered a long term asset. Long term assets are the assets that a company holds of value that are expected to last in spite of any depreciation. These assets are defined as the value of a company's equipment, property and any other assets that they have placed on a balance sheet. 8) Fictitious Assets : An asset entry recorded on the balance sheet of a business that has value to the business, but that does not correspond to a real asset or have a resale value. Fictitious assets are used to keep track of assets that cannot be recorded under normal accounting categories, such as prepayments or deferred revenues. 9) Wasting asset : An asset which has a limited life and therefore decreases in value over time, such...
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