On a Balance sheet what does investment property represent is it fixed asset or investment?
It is part of the long-term investments in the non current section of balance sheet
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If less than a year to maturity then current assest, more than a year long term asset.
Fixed Assets are things of value that are expected to maintain their value to the entity for more than a year. All Assets are Balance Sheet accounts so yes, they should ini…tially be recorded on the Balance sheet.
Fixed assets are considered non-current assets on the Pro Formabalance sheet. Pro forma sheets are done prior to a planned merger,acquisition, and predicts the anticipated res…ults of the action.
On a balance sheet what does contra asset allowance for doubtful accountsrepresent Is it current asset fixed asset or investment?
see the site.. http://ccba.jsu.edu/accounting/BADDEBTS.HTML
If you are talking about stock that the company in question has issued, then it is not an asset at all, but rather a component of owner's equity. However, shares of stock in o…ther companies that have been purchased are in fact current assets. . The idea is that if a firms needs to make payments to suppliers, lenders, etc. they can sell stock and turn it to cash immediately. This is typically not the case with fixed assets. . Investments in stocks are highly liquid. Fixed assets are typically depreciated over time (except land) and are not expected to be sold within a year. While some stock investments might end up being longer than 1 year, it is advantageous for firms to classify them as current assets. . Financial analysts usually look at current assets to see how quickly a firm can meet its financial obligations. Lenders like to see firms with substantial current assets - this means that they are liquid.
It's treated as part of the non-current asset. Because future economic benefits are expected to flow to the related entities, therefore it's an asset.
Firstly Current Assets in a balance sheet are technically "Assets that will provide a future economic benefit" to the company within a period of one financial period (a financ…ial year in Australia - from July 1 to June 30...financial year in USA is different). Now generally speaking an 'Investment Property' has all the hallmarks of a Long Term Investment, and therefore should be categorized as a Long Term Asset. Why? Well the whole purpose of an investment property is to provide benefits from two sources... Firstly renting the property out, you the owner (or company) will gain assessable income by way of RENT..... Secondly assuming capital growth etc, when you Sell or Dispose of the Asset (property) you will realise a capital gain....the increase in capital growth accumulated over the life of the property....which is always the Market Value, over and above the purchase price. So back to your question, if it really is an investment property held for the benefit of capital growth, then it would not be a current asset, rather a Long Term Invesment.... (You will also note that a category of the balance sheet in Fixed Asset (Long Term) is Plant Property & Equipment - PPE) Now heres an interesting point. Ask yourself are you in the business of Investing or are you (or the company) in the business of trading? ie Buying and Selling Properties? If you are the latter, ie trader, it may be that you or your company may build, renovate, and 'sell' properties... In other words you or your company earns 'Income' (here in AUS its called revenue or income according to ordinary concepts) by building and selling properties.... ...as such ALL properties owned are INVENTORY.....in which case it would likely therefore to be categorised as CURRENT ASSETS...? why because INVENTORY or STOCK is a category of Current Assets. ...Inventory are like products or items in a shop or Retailer....they earn 'income' by retailing or selling items in their shop.. ..So back to the main point, if you feel your company earns income by building, and selling properties, and if it therefore falls under inventory, then Y'ES those properties will be current assets, for that purpose. ...But should a property or properties be kept for over ONE year or more, then it really is an investment and thus fall under Long Term Assets (long term investment).... Hope that helps
A restricted investment is one that is not liquid. The entity may not convert the investment to cash quickly and/or easily. Examples include bonds, notes, and mortgages.
depreciation of fixed assets reduces the profit as depreciation is also an expense.
Long term investment is non-current asset but if there is maturity in different dates then that portion which is going to mature in current fiscal year then it is current asse…t and remaining portion is non-current.
You need more information than that to create a balance sheet. There are three primary components of a Balance Sheet: Assets, Liabilities, and Stockholder's Equity. Assets a…re probable future economic benefits to the company. Liabilities are obligations by the company that will require the sacrifice of future benefits. Stockholder's Equity is the ownership interest in the company. Your total assets will always equal the sum of your Liabilities and Stockholder's Equity.
NO,Inventory is recorded at the lower of cost or market value.
Assets are listed in order of liquidity, or how quickly they can be converted into cash. Fixed Assets (Land, Buildings, Machinery, etc.) take longer to sell than stocks and bo…nds. Accounts Receivable will turn into cash in 30 days (for the most part) etc. Inventory will turn over several times in a year. The assets listed first are "Current Assets" - things that wil be used within the fiscal year. Fixed Assets have a longer life. This is similar to Current Liabilities (amounts due within 12 months) and Long-term Liabilities (amounts due beyond 12 months).
they fall in the first column of a balance sheet
Fixed assets are those assets which are used in business for morethan one fiscal year that's why it must be reduced in some mannerto allocate it's cost in all those years in w…hich it is utilized sodepreciation is the method through which this is achieved.Depreciation has a contra account to specific assets through whichassets value is reduced as expense in income statement and as wellas used to reduce the actual price of asset from balance sheet. Example: if an assets value of $100 is used for 10 years then depreciationof $10 is spread for all those 10 years and shown in incomestatement as expense as well as reduction of $10 each year frombalance sheet until 10 th year after which asset will befully utilized and depreciated from business.
It depends on your time frame and on how much risk you can afford to take.