Sorry, you do not have permission to ask a question, You must login to ask a question.


Forgot Password?

Need An Account, Sign Up Here

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Sign InSign Up

AccountingQA

AccountingQA Logo AccountingQA Logo

AccountingQA Navigation

  • Home
  • Ask Questions
  • Write Answers
  • Explore
  • FAQs
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Questions
    • Most Visited
    • Most Active
    • Trending
    • Recent
  • Follow
    • Categories
    • Users
    • Tags
  • Write an Answer
  • Badges & Points
  • Request New Category
  • Send a Suggestion
  • Search Your Accounting Question..

AccountingQA Latest Questions

Jasmeet_Sethi
Jasmeet_Sethi
In: 1. Financial Accounting > Miscellaneous

Are loose tools current assets?

Current AssetsLoose Tools
  • 1 Answer
  • 0 Followers
Answer
  1. Karan B.com and Pursuing ACCA
    Added an answer on July 3, 2021 at 6:26 am
    This answer was edited.

    Current assets are all the assets of the company which are expected to be used, sold, or consumed within one year. Current assets are those assets that can be converted into cash easily. For example - Inventory, Accounts Receivable, Cash, and Cash Equivalents. Loose tools are parts of machinery or sRead more

    Current assets are all the assets of the company which are expected to be used, sold, or consumed within one year. Current assets are those assets that can be converted into cash easily.

    For example – Inventory, Accounts Receivable, Cash, and Cash Equivalents.

    Loose tools are parts of machinery or spare parts of machinery. Loose can be classified on the nature of use whether it is a fixed asset or a current asset. If loose tools are used regularly or within one accounting year, it is classified as a current asset.

    Loose tools are usually classified as a current asset, however, there is one exception i.e it is excluded from the current ratio.

    They are excluded from the current ratio because the current ratio takes into account only current assets, and the nature of loose tools is either a fixed asset or a current asset and can’t be converted into cash easily.

    The current ratio is calculated to check the liquidity of the company.

    Loose tools appear in the Asset Side of the Balance Sheet under the head Current Asset, subhead Inventories.

    The extract of the Balance Sheet is as follows:

    When the balance sheet prepared under Schedule III loose tools is shown under notes to accounts under sub-head Inventories on the asset side.

    When the balance sheet is in a T format loose appears as a current asset after recording fixed assets on the asset side.

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
Simerpreet
SimerpreetHelpful
In: 1. Financial Accounting > Miscellaneous

Is Land a Current Asset?

Current Assets
  • 2 Answers
  • 0 Followers
Answer
  1. Bonnie Curious MBA (Finance)
    Added an answer on June 27, 2021 at 5:34 am
    This answer was edited.

    Similarly, someone asked Are loose tools current assets

    Similarly, someone asked Are loose tools current assets

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp

Sidebar

Question Categories

  • 1. Financial Accounting

      • Accounting Terms & Basics
      • Bank Reconciliation Statement
      • Banks & NBFCs
      • Bills of Exchange
      • Capital & Revenue Expenses
      • Consignment & Hire Purchase
      • Consolidation
      • Contingent Liabilities & Assets
      • Departments & Branches
      • Depreciation & Amortization
      • Financial Statements
      • Goodwill
      • Insurance Accounting
      • Inventory or Stock
      • Investment Accounting
      • Journal Entries
      • Ledger & Trial Balance
      • Liquidation & Amalgamation
      • Miscellaneous
      • Not for Profit Organizations
      • Partnerships
      • Ratios
      • Shares & Debentures
      • Source Documents & Vouchers
      • Subsidiary Books
  • 2. Accounting Standards

      • AS
      • IFRS
      • IndAS
  • 3. Cost & Mgmt Accounting
  • 4. Taxes & Duties

      • GST
      • Income Tax
  • 5. Audit

      • Bank Audit
      • Internal Audit
      • Miscellaneous - Audit
      • Statutory Audit
  • 6. Software & ERPs

      • Tally
  • 7. MS-Excel
  • 8. Interview & Career
  • Top Questions
  • I need 20 journal entries with ledger and trial balance?

  • Can you show 15 transactions with their journal entries, ledger, ...

  • Following is the Receipts and Payments Account of Bharti Club ...

  • What is loose tools account and treatment in final accounts?

  • What is furniture purchased for office use journal entry?

  • Prepare Income and Expenditure Account of Youth Club from the ...

  • What is mobile phone depreciation rate?

  • How to show adjustment of loose tools revalued in final ...

  • What is the Journal Entry for Closing Stock?

  • How much is depreciation on camera?

Hot Topics

Accounting Policies Accounting Principles Balance Sheet Bank Reconciliation Statement Bill of Exchange Branch Accounting Calls in Advance Capital Capital Expenditure Companies Act Compound Entry Consignment Creditors Current Assets Debit Balance Debtors Depreciation Difference Between Dissolution of Firm Dissolution of Partnership Drawings External Users Fictitious Assets Final Accounts Financial Statements Fixed Assets Fixed Capital Fluctuating Capital Gain Impairment Installation Interest Received in Advance Internal Users Journal Entry Ledger Loose Tools Miscellaneous Expenditure Profit Rent Rent Received in Advance Reserves Revaluation Revenue Expenditure Revenue Reserve Sacrificing Ratio Subscription Subscription Received in Advance Trial Balance Type of Account Uncalled Capital
  • Home
  • Questions
    • Most Visited
    • Most Active
    • Trending
    • Recent
  • Follow
    • Categories
    • Users
    • Tags
  • Write an Answer
  • Badges & Points
  • Request New Category
  • Send a Suggestion

Most Helping Users

Astha

Astha

  • 50,286 Points
Leader
Simerpreet

Simerpreet

  • 72 Points
Helpful
AbhishekBatabyal

AbhishekBatabyal

  • 65 Points
Helpful

Footer

  • About Us
  • Contact Us
  • Pricing
  • Refund
  • Forum Rules & FAQs
  • Terms and Conditions
  • Privacy Policy
  • Career

© 2021 All Rights Reserved
Accounting Capital.