Unit 7 Assets-Current Assets III.ReceivablesII.PrepaymentIII.Inventory
Unit 7 Assets—Current Assets Ⅱ Ⅰ.Receivables Ⅱ.Prepayment Ⅲ. Inventory
Current assets areassets thatareexpected tobeconverted to cash, sold or consumed within 12months or within the business's normal operatingcycle if longer than a year.22025/12/3
2 2025/12/3 ⚫ Current assets are assets that are expected to be converted to cash, sold or consumed within 12 months or within the business’s normal operating cycle if longer than a year
I.ReceivablesThe money owing from sales on credit or other individualsarereceivables,whichreferto themonetary claims againstbusinesses,individuals and other debtorsAccountsReceivableReceivablesNotesReceivableOtherReceivables32025/12/3
3 2025/12/3 Ⅰ.Receivables ⚫ Accounts Receivable ⚫ Notes Receivable ⚫ Other Receivables Receivables The money owing from sales on credit or other individuals are receivables, which refer to the monetary claims against businesses, individuals and other debtors
1.Accounts ReceivableAccounts receivable are the receivablescollected by a business in sellingproducts,goods or services2025/12/3
4 2025/12/3 1.Accounts Receivable ⚫ Accounts receivable are the receivables collected by a business in selling products, goods or services
(1)AccountingofAccountsReceivableWhenabusiness makes its sales on accountDr.AccountsReceivableCr.Sales RevenueWhenthe amount onaccount is collectedDr.CashCr.Accounts Receivable52025/12/3
5 2025/12/3 (1)Accounting of Accounts Receivable ⚫ Dr. Accounts Receivable Cr. Sales Revenue When a business makes its sales on account ⚫ Dr. Cash Cr. Accounts Receivable When the amount on account is collected