| Free small business accounting software primarily | | | | reverse order, that is, fixity or listing of the least |
| focuses on assets. Assets may be described as | | | | liquid (fixed) first followed by others. All assets are |
| valuable resources owned by a business, which | | | | grouped into categories; that is, assets with similar |
| were acquired at a measurable money cost. As | | | | characteristics are put in one category. The |
| an economic resource, they satisfy three | | | | assets included in one category are different from |
| requirements. In the first place, the resource | | | | those in other categories. The standard |
| must be valuable. A resource is valuable if it is | | | | classification of assets divides them into fixed |
| cash/ convertible into cash; or it can provide | | | | assets, current assets, investments and other |
| future benefits to the operations of the firm. | | | | assets. |
| Secondly, the resource must be owned. Mere | | | | Fixed assets are fixed in the sense that they are |
| possession or control of a resource would not | | | | acquired to be retained in business on a long-term |
| constitute an asset; it must be owned in the legal | | | | basis to produce goods and services are not for |
| sense of the term. Finally, the resource must be | | | | resale. In contrast to fixed assets, current assets |
| acquired at a measurable money cost. In cases in | | | | are short-term in nature. They refer to assets |
| which an asset is not acquired for cash or a | | | | resources, which are either held in the form of |
| promise to pay cash, the question is what it | | | | cash or are expected to be realized in cash within |
| would have cost had cash been paid for it. | | | | the accounting period or the normal operating |
| The assets in the balance sheet are listed either in | | | | cycle of the business. Investments represent |
| order of liquidity- promptness with which they are | | | | investment of funds in the securities of another |
| expected to be converted into cash- or in | | | | company. |