Currents and non-currents

Assets

• Current
• Expected to be converted into money or intended for sale and consumption
• Held primarily for the purpose of being traded
• Expected to be converted within twelve months
• Trading inventories , Debtors etc.
• Non-Current
• Includes tangible and intangible assets of long term nature.
• Not intended to be sold but to be used overtime to earn income.
• Assets with a useful life longer than a year
• Land and buildings, vehicles and equipment etc.

Liabilities

• Current
• Expected to be settled within one year.
• Held primarily for the purpose of being traded
• Creditors , Income recieved in advance etc.
• Non-Current
• Long term debts that have to be settled after one year
• Long term loans

Income and expenses

• Income
• Money recieved for services rendered or goods sold.
• Sales , rent recieved etc.
• Expenses
• Money paid for services rendered or goods sold to earn income.
• Purchases , rent paid etc.