ANALYSIS OF FIXED AND CURRENT ASSETS IN THE FUNCTION OF THE DEVELOPMENT OF ECONOMIC SOCIETY
ANALYSIS OF FIXED AND CURRENT ASSETS IN THE FUNCTION OF THE DEVELOPMENT OF ECONOMIC SOCIETY

Summary/Abstract: Effective management of assets is crucial for the success of any business. Mismanagement of assets can lead to serious consequences such as loss of liquidity or financial losses. A company’s assets include fixed and current assets, accrued assets, and unpaid registered capital which are all listed on the active side of the balance sheet. When analyzing total assets, it is important to focus on business assets such as fixed and current assets and accruals as they directly impact the financial result. Usually, a business should have a higher proportion of current assets than fixed assets since fixed assets constantly depreciate due to depreciation. However, in certain businesses such as transport companies or hydroelectric power plants, fixed assets are more dominant. Therefore, businesses should consider the specifics of their operations when analyzing their balance sheets.

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