Free Small Business Accounting Software

Free small business accounting software primarilyreverse order, that is, fixity or listing of the least
focuses on assets. Assets may be described asliquid (fixed) first followed by others. All assets are
valuable resources owned by a business, whichgrouped into categories; that is, assets with similar
were acquired at a measurable money cost. Ascharacteristics are put in one category. The
an economic resource, they satisfy threeassets included in one category are different from
requirements. In the first place, the resourcethose in other categories. The standard
must be valuable. A resource is valuable if it isclassification of assets divides them into fixed
cash/ convertible into cash; or it can provideassets, current assets, investments and other
future benefits to the operations of the firm.assets.
Secondly, the resource must be owned. MereFixed assets are fixed in the sense that they are
possession or control of a resource would notacquired to be retained in business on a long-term
constitute an asset; it must be owned in the legalbasis to produce goods and services are not for
sense of the term. Finally, the resource must beresale. In contrast to fixed assets, current assets
acquired at a measurable money cost. In cases inare short-term in nature. They refer to assets
which an asset is not acquired for cash or aresources, which are either held in the form of
promise to pay cash, the question is what itcash 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 incycle of the business. Investments represent
order of liquidity- promptness with which they areinvestment of funds in the securities of another
expected to be converted into cash- or incompany.