ASSETS

Lecturer: E.Jimmer Sulistiyo, S.S, M.Pd

By:

RAHMANITA (022117060)

ILHAM FADILAH SUKRON (022117001)

ASEP NURJAMIL (022117035)

MUHAMMAD FAHRUDIN (022117145)

ACCOUNTING
ECONOMICS FACULTY OF PAKUAN BOGOR 2017-2018

LEVEL 1
 Before we show you about asset in our company that we examine, There is
nothing wrong if we know what the meaning of asset. So Ill explain you about asset.

In financial accounting, an asset is an economic resource. Anything tangible

or intangible that can be owned or controlled to produce value and that is held by a
company to produce positive economic value is an asset. Simply stated, assets
represent value of ownership that can be converted into cash (although cash itself is
also considered an asset).[1]

One of the most widely accepted accounting definitions of asset is the one
used by the International Accounting Standards Board.[6] The following is a quotation
from the IFRS Framework: "An asset is a resource controlled by the enterprise as a
result of past events and from which future economic benefits are expected to flow to
the enterprise

Assets = Liabilities + Capital (which for a corporation equals owner's equity)

According to our task, that we have to explain and search about asset in the
company, so I have researched the assets from Abudawood Tour and Travel.
Although we cant know all everything in that company, because its the companys
secret.

abudawood has a capital in June approximately 1 billion. its not only cash,
including fixed asset, Short-term investments, Accounts receivable, Earnings that will
still be accepted, Stocks, Expenses paid in advance, etc.

we cant ask very deeply, but we have data from asset in that company.

BCA BANK = Rp.200.000.000

BNI BANK = Rp.75.045.000

MANDIRI BANK = Rp.43.050.000

CASH = Rp.130.915.000

And the rest is 550.990.000, we cant show you about all everything in that company,
they have various branches and I cant tell you how much the total of assets.
We just have data like that. Probable including land, building, or other. Yeah, its not
big company, but I think its very potential company, because the trade there are very
good. with the many foreign tourists who vacation there, of course there will be many
customers there. And I dont know how much the asset in october.

As we know, assets is one of the important things for the company, without the
asset, a company will not be able to work. such as abudawood companies, they will
not be possible to work without assets. But, dont forget, assets may increase or
decrease, depending on the strength of their own competitiveness.
And I cant tell you all everything about that company. at least we know a little about
the assets in that company.

And we will explain you about asset.

Current assets
Current assets are cash and other assets expected to be converted to cash or
consumed either in a year or in the operating cycle (whichever is longer), without
disturbing the normal operations of a business. These assets are continually turned
over in the course of a business during normal business activity. There are 5 major
items included into current assets:

1. Cash and cash equivalents it is the most liquid asset, which

includes currency, deposit accounts, and negotiable instruments (e.g., money
orders, cheque, bank drafts).
2. Short-term investments include securities bought and held for sale in the
near future to generate income on short-term price differences (trading
securities).
3. Receivables usually reported as net of allowance for non-collectable
accounts.
4. Inventory trading these assets is a normal business of a company. The
inventory value reported on the balance sheet is usually the historical cost or
fair market value, whichever is lower. This is known as the "lower of cost or
market" rule.
5. Prepaid expenses these are expenses paid in cash and recorded as
assets before they are used or consumed (common examples are insurance
or office supplies). See also adjusting entries.
Fixed assets
Also referred to as PPE (property, plant, and equipment), these are purchased for
continued and long-term use in earning profit in a business. This group includes as
an asset land, buildings, machinery, furniture, tools, IT equipment, laptops, and
certain wasting resources, timberland and minerals. They are written off
against profits over their anticipated life by charging depreciation expenses (with
exception of land assets). Accumulated depreciation is shown in the face of the
balance sheet or in the notes. An asset is an important factor in a balance sheet.

Long-term investments
Often referred to simply as "investments". Long-term investments are to be held for
many years and are not intended to be disposed of in the near future. This group
usually consists of three types of investments:

1. Investments in securities such as bonds, common stock, or long-term notes.

2. Investments in fixed assets not used in operations (e.g., land held for sale).
3. Investments in special funds (e.g. sinking funds or pension funds).
Intangible assets
Intangible assets lack of physical substance and usually are very hard to
evaluate. They include patents, copyrights, franchises, goodwill, trademarks, trade
names, etc. These assets are (according to US GAAP) amortized to expense over 5
to 40 years with the exception of goodwill.

Tangible assets
Tangible assets are those that have a physical substance, such
as currencies, buildings, real estate, vehicles, inventories, equipment, art
collections, precious metals, rare-earth metals, Industrial metals, and crops.
Depreciation is applied to tangible assets when those assets have an anticipated
lifespan of more than one year. This process of depreciation is used instead of
allocating the entire expense to one year.
Tangible assets such as art, furniture, stamps, gold, wine, toys and books have
become recognized as an asset class in their own right. and many high-net-worth
individuals will seek to include these tangible assets as part of their overall asset
portfolio. This has created a need for tangible asset managers.
Comparison: current assets, liquid assets and absolute liquid assets[edit]

Current assets Liquid assets Absolute liquid assets

Stocks

Prepaid expenses

Bills receivable Bills receivable

Cash in hand Cash in hand Cash in hand

Cash at bank Cash at bank Cash at bank

Accrued incomes Accrued incomes Accrued incomes

Loans and advances Loans and advances Loans and advances

(short term) (short term) (short term)

Trade investments (short Trade investments (short Trade investments (short

term) term) term)
yes we have completed this discussion, hope you enjoy it and understand about the
discussion we have described. thank you and best regards