The difference between current liabilities and current assets

First, the composition of the two is different.

Current liabilities include: short-term borrowings, accounts payable, notes payable, wages payable, welfare expenses payable, taxes payable, dividends payable, withholding expenses, other payables, other payables, etc.

Current assets include: monetary funds, short-term investments, notes receivable, accounts receivable and inventory.

Second, the characteristics of the two are different.

Current liabilities: 1. The amount of current liabilities is generally relatively small.

2. The maturity date of current liabilities is within one year or one business cycle.

Current assets: 1. The occupation form of movable assets is changeable.

2. The amount of current assets is volatile.

3. The cycle of current assets is consistent with the production and operation cycle.

4. The current assets are flexible and diverse.

3. The valuation methods of the two are different.

Current liabilities: Theoretically, liabilities should be valued at the discounted value of the amount payable in the future (i.e., its present value) based on the present value of the cash outflows required to service the debt in the future.

Current assets: The calculation of the taxpayer's inventory of commodities, materials, finished products, semi-finished products and other products shall be based on the actual cost.

The actual cost price of the taxpayer's inventory can be calculated by one of the first-in-first-out method, the last-in-first-out method, the weighted average method, the moving average method, and other methods.

Once the valuation method is selected, it shall not be changed at will, and if it is really necessary to change the valuation method, it shall be reported to the in-charge tax authorities for the record before the beginning of the next tax year.

Current liabilities: refers to the debts that an enterprise needs to repay in a short period of time, generally within one year, including short-term bank loans, accounts receivable, interest receivable, wages receivable and other items.

Current assets: Corresponding to fixed assets, they refer to assets that will be consumed in a short period of time, including cash, bank demand deposits, accounts receivable, etc.

Current liabilities refer to debts that will be repaid within one or more years of a business cycle, mainly including short-term borrowings, accounts payable, notes payable, accounts receivable, wages payable, dividends payable, taxes payable and withholding expenses.

Current assets refer to assets that can be realized or consumed within a business cycle of one year or more than one year, including cash and various deposits, short-term investments, receivables and prepayments, inventories, etc.

To put it simply, current liabilities are money or things that are under your control or in your name but do not belong to you, and you have to pay them back within a year.

Liquid assets represent money or things that are under your control or in your name, and which can be easily exchanged for money.

The difference between current and non-current liabilities.

Current assets refer to the assets that can be realized or used by an enterprise within a business cycle of one year or more than one year, and are an indispensable part of enterprise assets.

Current liabilities refer to debts that will be repaid within one year (including one year) or more than one year of a business cycle, including short-term borrowings, notes payable, accounts payable, accounts receivable, wages payable, welfare expenses payable, dividends payable, taxes payable, other temporary receivables and payables, withholding expenses and long-term borrowings due within one year.

Activity liabilities are also called short-term liabilities.

According to the theory of financial management, the funds of current assets may be higher than current liabilities.

Current liabilities are divided into temporary current liabilities (financial current liabilities, or short-term financial liabilities) and spontaneous current liabilities (operating current liabilities).

Temporary liabilities refer to liabilities incurred in order to meet temporary working capital needs, such as debts borrowed by commercial retail enterprises to purchase goods in excess of their purchase of goods before the Spring Festival to meet the needs of holiday sales; - Short-term use.

Spontaneous liabilities refer to liabilities directly arising from the continuing operation of an enterprise, such as commercial credit financing and other payables arising from daily operations, as well as employee remuneration, interest payable, taxes payable, etc. - Can be used by businesses for a long time.

Current liabilities include short-term borrowings, notes payable, accounts payable, accounts receivable, taxes payable, dividends payable, and other payables.

In the balance sheet, the current liabilities mainly include short-term borrowings, notes payable, accounts payable, accounts receivable, other accounts payable, wages payable, welfare expenses payable, taxes payable, dividends payable, withholding expenses and other items.

The purpose of recognizing current liabilities is mainly to compare them with current assets and reflect the short-term solvency of the enterprise. Short-term solvency is a financial indicator that short-term creditors are very concerned about, and current liabilities and long-term liabilities must be shown separately on the balance sheet.

Current liabilities can be divided into different categories according to different criteria to meet different needs.

Classification by means of payment. Current liabilities can be classified according to the means of repayment, which can be divided into monetary current liabilities and non-monetary current liabilities.

Monetary current liabilities. Monetary current liabilities refer to current liabilities that need to be repaid with monetary funds, mainly including short-term borrowings, notes payable, accounts payable, wages payable, welfare expenses payable, taxes payable, other payables, profits payable, and other payables and withholding expenses that need to be repaid with monetary funds.

Non-monetary current liabilities. Non-monetary current liabilities refer to current liabilities that do not need to be repaid with monetary funds, mainly including debts that do not need to be repaid with monetary funds in accounts receivable, other payables and withholding expenses. Advance receivables generally need to be repaid in terms of goods or services; Most of the provisions for repairs are also not covered by monetary funds.

Classification is determined by whether the reimbursement amount is determined. According to whether the repayment amount is determined, it can be divided into current liabilities whose amount can be determined and current liabilities whose amount needs to be estimated.

Current liabilities whose amount can be determined. Current liabilities with a determinable amount refer to current liabilities with definite creditors and repayment dates and exact repayment amounts, mainly including short-term borrowings, notes payable, wages payable, etc.

The amount needs to be estimated current liabilities. Current liabilities whose amount needs to be estimated refer to current liabilities that do not have an exact creditor and repayment date, or whose repayment amount needs to be estimated despite having a definite creditor and repayment date, mainly including welfare expenses payable, accounts payable and withholding expenses without obtaining settlement vouchers.

Current assets: refer to assets that can be realized or consumed within a business cycle of one year or more than one year, generally including cash and bank deposits, trading financial assets, receivables and prepayments, inventories, expenses to be amortized, etc.;

Current liabilities: Debts that will be repaid within one year (including one year) or a business cycle of more than one year, including short-term borrowings, notes payable, accounts payable, wages payable, taxes payable, withholding expenses, etc.

Monetary funds (bank deposits, cash in hand, other monetary funds), receivables (accounts receivable, notes receivable, other receivables), etc. are current assets.

The corresponding (accounts payable, notes payable) are current liabilities.

Current Assets What do current liabilities represent?

Current assets and current liabilities represent assets that can be consumed or realized in a short period of time (at least less than one year), respectively; and debts to be repaid within one year.