Funds (accounting)
Central is in the economy and in accounting the collective name of all assets in the balance sheet of companies .
General
Assets are all assets that a company can dispose of. They are divided into fixed assets and current assets . The accounting of these funds is done according to its convertibility into cash , which is the chance it into cash to convert. The hardest to liquidate is fixed assets (e.g. land or machines ), the best liquid to be liquidated is current assets (the cash on hand is already cash, bank balances can be converted into cash by paying out cash).
Use of the term
In business administration, liquid funds are the assets with the highest level of liquidity; they ensure liquidity . The term operating resources is sometimes misleadingly used as a synonym for liquid funds, although it describes a production factor ( operating resources ) that causes operating resource costs. Movement balance and cash flow statement know the source of funds , and the funds , the former being the funding sources ( liabilities ) and the latter the form of investment describes these agents. The commitment of funds is nothing other than the commitment of capital . The legal term own funds is used by credit institutions ( own funds according to § 10a KWG ) and insurance companies ( own funds according to § 89 VAG ) for equity , the word " debt " for debt is often used to distinguish financial subsidies .
Others
When it comes to money , funds are also used outside the company . For example, there is financial support from the state or the lack of funds from private individuals when there is a lack of money .
literature
- Jürg Leimgruber & Urs Prochinig, Accounting, Volume 1 , 4th edition, 1992, p. 14, publishing house of the Swiss Commercial Association, Zurich.
- Hannelore Grill & Hans Perczynsiki, Bank bookkeeping , 14th edition, 1996, p. 23, Verlag Dr. Max Gehlen, Bad Homburg vor der Höhe.
