3-Common-examples-of-current-asset FABM.pdf

lecture notes in FABM

1. GROUP 2
presentation

2. MEET OUR TEAM
2
AARON JOB MAGONCIA
LEADER
KAREN AVECILLA ALLANANAFURAN MERRY JOY TANGO

3. 3 COMMON
EXAMPLES OF
CURRENT ASSET
Group 2

4. CASH
Normally consist of coins and
currencies on hand, money orders or
some checks on customers, and
deposits on bank accounts
3common examples of current asset

5. EXAMPLES OF CASH
5
a. Currencies
Cash
A more general definition is that a currency is a system of
money in common use within a specific environment
over time, especially for people in a nation state. Under
this definition, U.S. dollars (US$), euros (€), Japanese yen
(¥), and pounds sterling (£) are examples of (government-
issued) fiat currencies.

6. b.Funds on deposit with a bank
6
It is the money that you saved
in a bank
Cash

7. c. Cheque
7
Cash
A cheque, or check is a document that orders a
cash to pay a specific amount of money from a
person’s account to the person in whose name
the cheque has been issued.

8. d.Money Orders
8
-a money order is directive to pay a pre-specified
amount of money from prepaid funds, making it a
more trusted method of payment than a cheque
Cash

9. MARKETABLE
SECURITIES
Also known as temporary investments. These are
short-term investments of funds which are available
for the current operations and intended to be held for
not more than a year.
3common examples of current asset

10. EXAMPLES OF
MARKETABLE SECURITIES
10
a. Stocks
•Stocks give you partial
ownership in a
corporation
b. Bonds
•while bonds are a loan
from you to a company or
government
Marketable Securities

11. c. Preferred shares/ Preferred stock
-a class of stock that is granted superior rights to
common stock, like higher dividend payments and a
higher claim to asset in the event of liquidation. It is
attractive as it usually offers higher fixed-income
payments than bonds with lower investment per share
11
Marketable Securities

12. 12
d. EFTs (exchange-traded funds)
-funds that trade on exchanges, generally tracking a
specific index. It is a basket of securities you buy or sell
through brokage firm on a stock exchange
Marketable Securities

13. 13
Receivables
Represents amounts collectible from customers,
clients and other persons for good, services or
moneys given. It is created any time money is
owned to a firm for services rendered or products
provided that have not been paid.
3common examples of current asset

14. GENERALLY, RECEIVABLES ARE
DIVIDED INTO THREE TYPES.
•Accounts receivables
14
These are:
Receivables
These are collectibles from customers arising from
sale of goods or services on open accounts without
any formal written promise to pay

15. 15
Receivables
•Notes receivable
Notes receivable is a common type of receivables,
and it’s similar to the standard accounts
receivable except for the payment deadlines.
With a conventional receivable, you would
ordinarily give a customer a two-month window
to pay you back, but with notes receivable, the
payment due date can be extended up to a year or
more.

16. 16
Receivables
Other receivables include Interest receivables,
salary receivables, employee advances, tax
refunds, loans made to employees or other
companies, and advances on wages paid to
employees.
•Other receivables

17. ALLOWANCE FOR
DOUBTFUL ACCOUNTS

18. ➤Allowance for Doubtful Accounts, sometimes termed as
Allowance for Bad Debts, is a contra asset account used to record
accumulated balance of customers' accounts that are doubtful of
collectability. It reduces accounts receivable if it remains
uncollected at the end of the accounting period. It should be
emphasized that this is not an asset but rather a contra-asset
account.
Allowance for doubtful accounts 18

19. THANK YOU
Mirjam Nilsson
[email protected]
www.contoso.com