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