Question

1. List three categories of Assets and give at least 1 example for each:

Answer 1

Categories of Assets include-

1) Current Assets - These are the assets which are highly liquid and are of maurity or less than or equal to 12 months. For example: Accounts Receivables, Cash, Short term securities etc

2) Intangible Assets- These are the long term assets which have value but they don't have physicality. For example: Patents, Goodwill etc

3) Tangible Assets- These are mainly long term assets which are not expected to be cashed for at least an year. For example: Land, Machinery etc