Assets are divided into current assets and fixed assets. What is the importance of separation to enterprises?

Assets are divided into current assets and fixed assets. Current assets: basic assets that can be realized and can maintain daily operations.

Fixed assets: high income and long payback period. It is essential for manufacturing enterprises.

Current assets generally include cash, bank deposits, other monetary funds, transactional financial assets, bills receivable, prepayments, interest receivable, dividends receivable, non-current assets due within one year (that is, fixed assets with a service life of less than 1 year) and other current assets. Fixed assets are not current assets, but two different concepts. First, fixed assets belong to non-current assets, and the difference between current assets and non-current assets lies in whether they can completely turn themselves into cash in a cycle.

Second, fixed assets.

1. Fixed assets refer to non-monetary assets held by enterprises for producing products, providing labor services, leasing or management, which have been used for more than 12 months and have reached a certain standard in value, including houses, buildings, machines, machinery, means of transport and other equipment, appliances and tools related to production and business activities.

2. Fixed assets are the labor means of enterprises and the main assets that enterprises rely on for their production and operation. From the perspective of accounting, fixed assets are generally divided into productive fixed assets, unproductive fixed assets, leased fixed assets, unused fixed assets, unnecessary fixed assets, financing leased fixed assets and donated fixed assets.

floating assets

1. Current assets refer to assets that can be realized or used by an enterprise within a business cycle of one year or more, and are an indispensable part of enterprise assets. In the process of turnover transition, current assets start from monetary form, change its form in turn, and finally return to monetary form (monetary fund → reserve fund, fixed fund → production fund → finished product fund → monetary fund).

2. All kinds of funds are closely combined with production and circulation, with fast turnover and strong liquidity. Strengthening the audit of current assets business is conducive to determining the legitimacy and compliance of current assets business, checking the correctness of accounting treatment of current assets business, exposing its shortcomings, and improving the efficiency of using current assets.