Components of assets and liabilities in accounting
In this video I will explain what the asset and liability components in accounting, something very important in the Economy. In previous videos we analyzed what accounting is and what a balance sheet is.
The asset and liability components in accounting are as follows:
ACTIVE: is the destination of money
- Non-current assets: It is the set of elements that the company has bought and that it intends to make them last for more than one year: furniture, land,
- Current active: It is the set of elements that will not be with the company for a long time since it will be sold soon, the money that the company owns and the rights of the company (debts they have with it).
PASSIVE: set of company debts
- net worth: set of money that the company has been able to create in order to function. This patrimony belongs to the company and does not have to be returned.
- non-current liabilities: long-term debts (in more than one year)
- current liabilities: short-term debts to pay (in less than one year)
If you watch the video you will understand this explanation better since I explain different examples to illustrate it.
In addition, I have left you some printable exercises with their solutions so that you can check if you have understood what you have learned in today's lesson.
