Navigation ⬅Previous Chapter | Next Chapter ➡️ Learning Objectives By the end of this chapter, students should be able to: Explain what assets are and why they are important in accounting Classify assets into current and non- current assets Account for cash, receivables , and allowances for doubtful debts Apply inventory valuation methods ( FIFO , LIFO , Weighted Average ) Account for Property, Plant and Equipment ( PPE ) Calculate and record depreciation using straight-line and reducing balance methods Present assets correctly in financial statements 7.1 Meaning of Assets An asset is a resource controlled by a business as a result of past events, from which future economic benefits are expected to flow to the business. This definition, based on the IASB Conceptual Framework , contains three essential criteria: control, past event, and future economic benefit. Examples of Assets Cash in hand and at bank Inventory (goods held for resale) Accounts receivable (trade debtors) B...
Navigation ⬅Previous Chapter | Next Chapter ➡️ Learning Objectives By the end of this chapter, students should be able to: Explain what assets are and why they are important in accounting Classify assets into current and non- current assets Account for cash, receivables , and allowances for doubtful debts Apply inventory valuation methods ( FIFO , LIFO , Weighted Average ) Account for Property, Plant and Equipment ( PPE ) Calculate and record depreciation using straight-line and reducing balance methods Present assets correctly in financial statements 7.1 Meaning of Assets An asset is a resource controlled by a business as a result of past events, from which future economic benefits are expected to flow to the business. This definition, based on the IASB Conceptual Framework , contains three essential criteria: control, past event, and future economic benefit. Examples of Assets Cash in hand and at bank Inventory (goods held for resale) Accounts receivable (trade debtors) B...