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