What does current assets include?

Current Assets refer to assets that an enterprise can realize or use in a business cycle of one year or more, and are an indispensable part of enterprise assets. During the turnover transition, current assets start from the monetary form, change its form in turn, and finally return to the monetary form (monetary fund → reserve fund, fixed fund → production fund → finished product fund → monetary fund). All kinds of funds are closely combined with production and circulation, with fast turnover speed and strong liquidity.

strengthening the audit of current assets business is conducive to determining the legality and compliance of current assets business, checking the correctness of accounting treatment of current assets business, exposing its shortcomings and improving the efficiency of the use of current assets.

Current assets include monetary funds, short-term investments, notes receivable, accounts receivable and inventories. Due to the different characteristics of each project, it should be reviewed separately according to their different requirements.

1. In physical form, current assets are basically embodied in the material reserves of various departments and residents. Including:

(1) Current assets in the state of preparation for production and consumption refer to the means of production reserved by production units and consumer goods reserved by consumption departments and residents;

(2) Current assets in the state of sale. Refers to the unsold means of production and consumer goods reserves in the inventory of production departments and circulation departments and the reserve materials stored by the state;

(3) Current assets in the process of production. Refers to the reserve of work-in-process and semi-finished products of production units.

2. According to the liquidity, it can be divided into quick assets and non-quick assets. Including:

(1) Quick assets refer to current assets that can be realized in a short time, such as monetary funds, transactional financial assets and various receivables.

(2) Non-current assets include inventories, prepaid expenses, non-current assets due within one year and other current assets.

Current assets are greater than current liabilities, which generally indicates that the short-term repayment ability is strong. The higher the current ratio, the greater the liquidity of enterprise assets, which indicates that the enterprise has enough assets to be realized for debt repayment. However, the higher the current ratio, the better.

Because too large a ratio indicates that the current assets occupy more, which will affect the turnover efficiency and profitability of operating funds; If the ratio is too low, it means that the solvency is poor. Therefore, it is generally believed that the reasonable minimum flow ratio is 2. This is because among the current assets, the inventory with the worst liquidity accounts for about half of the total current assets, and the remaining liquid assets must be at least equal to current liabilities, so that the solvency of enterprises can be guaranteed.

the turnover rate of current assets refers to the turnover times of the average occupation of current assets to complete product sales in a certain period, which is the ratio of the net income from main business to the average balance of all current assets, reflecting the turnover rate of current assets and the utilization effect of current assets. Fast turnover will save current assets relatively, which is equivalent to relatively expanding asset investment and enhancing the profitability of enterprises; To slow down the turnover rate, it is necessary to supplement the current assets to participate in the turnover, which will waste funds and reduce the profitability of enterprises.

from different angles, there can be different classification methods. Moreover, different industries also have different current assets.

(1) According to the role of current assets in the production and operation of enterprises

1. The current assets of industrial enterprises can be divided into:

(1) Reserve assets: the current assets in the production preparation stage from purchase to production, including raw materials and main materials, auxiliary materials, fuel, spare parts for repair, low-value consumables, packaging materials, outsourced semi-finished products, etc.

(2) Production assets: current assets in the process of production from input to finished products being put into storage, including products in process, self-made semi-finished products, prepaid expenses, etc.

(3) finished assets: the current assets that are in the process of products to be sold from product warehousing to product sales, including finished products and semi-finished products and spare parts to be sold;

(4) Settlement assets: refers to all kinds of goods issued, accounts receivable, bills receivable, etc.

(5) monetary assets: refers to bank deposits, cash on hand, etc.

2. The current assets of commercial enterprises can be divided into:

(1) Commodity assets: including inventory goods and goods in transit;

(2) Non-commodity assets: including packages, materials and supplies, low-value consumables and beach expenses;

(3) Settlement assets: including various receivables, prepayments, bills receivable, etc.

(4) monetary assets: including bank deposits and cash on hand.

the proportion of the same kind of current assets in industrial enterprises and commercial enterprises is very different, and the proportion of commercial enterprises is much higher than that of industrial enterprises.

(2) According to the forms of current assets

, it can be divided into monetary current assets and physical current assets. Monetary current assets exist in monetary form, including the above-mentioned settlement assets and monetary assets; The current assets in physical form include the above-mentioned reserve assets, production assets, finished assets, etc., which are the focus of current asset price verification.

(3) according to the needs of planning and management of current assets

it can be divided into fixed current assets and non-fixed current assets. Fixed current assets are the basic components of current assets, including raw materials, auxiliary materials, in-process products, self-made semi-finished products, finished products, etc. Non-fixed current assets include settlement assets and monetary funds.

References: Baidu Encyclopedia entry Current assets.