Composition and structure of current assets

Circulating assets are a combination of circulation funds, as well as production current assets, determined in monetary terms. These components take part differently in the process of reproduction: the first - in the sphere of circulation, the latter are engaged in the production of goods.

Composition and structure of current assets

The conditions for the sale and production of products make demands on the constant availability of stocks of material assets in warehouses that are consumed in production, as well as finished products. For the uninterrupted operation of the shops, they must have certain stocks of unfinished goods. In addition, each company needs certain money on the settlement account.

The revolving funds are the assets of the company, which in the course of its activity transfer their value entirely to the final product, while they participate only once in the production process, losing or changing their natural form.

Working capital is the most mobile part of assets, which in each circuit goes through three stages: cash, production and commodity.

The composition and structure of current assets is represented by the following elements: circulation funds and circulating production assets.

The overwhelming part of the production current assets are the stocks of production (components, raw materials, materials and semi-finished products, packaging, fuel, spare parts, household equipment).

Together with production stocks, the composition and structure of current assets in terms of production assets includes funds in production, including in-progress products, as well as costs and expenses of future periods.

In the category of "work in progress" includes objects of labor that have already entered the production process, but not passed through the entire processing cycle, provided for by technology.

The only element of non-material revolving funds is the future expenses necessary to create a reserve, to install new equipment, etc.

Composition and structure of circulating assets: circulation funds

This category includes the funds of enterprises invested in the sale of goods and necessary for servicing the sale. This group includes finished products, which are in stock in anticipation of sale, shipped goods, but not paid for by the consumer (goods on credit, delayed payment). The circulation funds are also referred to free money in the cash register, as well as funds that are in unfinished settlements (advance payments to suppliers (prepayment), salary payments, etc.) and on the settlement account.

Working capital structure

Elements of circulation funds and current assets have the same principle of motion, and are in a constant continuous circulation. The ratio of individual components in the total value forms a structure of current assets. This indicator between different elements (finished products, packaging, spare parts, fuel, raw materials) is expressed as a percentage of the total.

According to the source of replenishment and formation, the composition of working capital is divided into own and borrowed funds.

The first are allocated by the founders in order to ensure the uninterrupted operation of the company. The main sources of their receipt are financial on-farm resources, as well as the profit of the enterprise.

Equivalent own funds include assets that do not belong to the enterprise, but are located under the terms of settlements in its turnover. This is wage arrears, reserve funds to cover future payments, payroll, and accounts payable.