Current Liability:-
Current Liabilities are
short term Liabilities with a maturity of one year or less.
Examples are
- Account payable
- Accrued expenses
- Bank over Draft
- Income tax Payable
Tuesday, December 9, 2014
What is Current Liability
Current Liability:-
What is Current Asset
Current Asset:-
Current assets are
short term assets with a maturity of one year or less.
Examples are
- Cash
- Marketable Securities
- Inventories
- Short term Investments
- Accounts Receivable
- Prepaid Expenses
What is Long Term Liability
Long Term Liability:-
Long Term Liabilities
are Liabilities with a maturity of more than one year
For Example
Long term Bank Loans
Difference between Cost and Expense
Difference
between Cost and Expense:-
Cost is the Price of a
product and when the utility of that product is finished then it is expend.
For example if we buy a coke for BDT 35, then the cost of the coke is BDT 35
and when we finished the coke then it is expend.
What is EOQ
EOQ (Economic Order Quantity) :– EOQ is that quantity of ordering materials for which the organization has to bear optimum amount of cost for ordering and carrying materials.
Formula
for calculating EOQ:-
EOQ
=
√2AO/C
Where,
A = Annual usage units
O = Ordering cost per unit
C = Annual
carrying cost of one unit
i.e. Carrying cast % *
Carrying cost of unit
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