P1 C1 Accounting and Its Terminology — Account STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceAccountP1 C1 Accounting and Its Terminology2 Marks
Question
Discuss types of assets.
✓
Answer
Assets means any such tangible or intangible product or item which is owned by businessand has economic value. Types of assets are as follows:
$(1)$ Non Current Assets :
$(i)$ Tangible / Visible assets
$(ii)$ Non tangible / Invisible assets
$(iii)$ Liquid assets
$(iv)$ Real assets
$(v)$ Fictitious assets Non-Current Assets : An asset held by business for more than one year period is known as non current asset.
$(a)$ An asset which are having physical existence and can be seen or can be touched areknown as tangible asset.
$(b)$ An asset which do not hold physical existence and cannot be touched or seen areknown as intangible assets. Current Assets : Assets whose time duration is of less than one year and can be convertedinto cash are known as current assets. e.g. cash balance, bank balance, stock of goods, etc. Liquid assets: All current assets excluding stock are known as liquid assets. Real assets : Real assets means assets that have value in reality and can be converted intocash quickly. Fictitious assets : Fictitious assets means assets do not have physical form, do not haveany realizable value and cannot converted into cash are known as fictitious assets.
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