Auditing - Classification of Assets | 12th Auditing : Chapter 4 : Verification and Valuation of Fixed Assets

Chapter: 12th Auditing : Chapter 4 : Verification and Valuation of Fixed Assets

Classification of Assets

Fixed assets are utilized to create incomes.

Classification of Assets

Fixed Assets

Fixed assets are utilized to create incomes.

Investments

Investments are expected to fetch income from external agencies.

Wasting assets

Wasting assets are of a fixed nature but depleted or consumed gradually.

Fictitious Assets

Assets, which have no market values, are known as fictitious assets. They are shown in the Balance Sheet on the asset side of it under the head “Miscellaneous Expenditure”.

Current Assets.

Current assets are those which are utilized or converted into cash within one year period.

Intangible Assets

They are long-term resources of an entity, but have no physical existence. They derive their value from intellectual or legal rights, and from the value they add to the other assets.

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12th Auditing : Chapter 4 : Verification and Valuation of Fixed Assets : Classification of Assets | Auditing