Sales and Types of Assets – Key Concepts for EPFO Exam скачать в хорошем качестве

Sales and Types of Assets – Key Concepts for EPFO Exam

#EPFOExam #CommerceNotes #SalesAndAssets #EPFOPreparation #AccountingBasics #BusinessStudies #FinanceKnowledge #ExamReady #EPFO2025 #StudyMaterialDepreciation refers to the gradual and systematic reduction in the value of a tangible fixed asset due to its use, passage of time, or obsolescence. It is an accounting process used to allocate the cost of an asset over its useful life.1. Sales Sales refer to the exchange of goods or services for money or other consideration. It is a key component of business operations and revenue generation. Types of Sales: Cash Sales: Payment is received immediately at the time of sale. Credit Sales: Goods or services are sold on credit, and payment is received later. Domestic Sales: Sales made within the same country. Export Sales: Sales made to customers in foreign countries. Online Sales: Conducted through digital platforms or e-commerce websites. Direct Sales: Sales made directly to consumers without intermediaries. 2. Types of Assets Assets are resources owned by a business that have economic value and can provide future benefits. Classification of Assets: A. Based on Convertibility: Current Assets: Assets that can be converted into cash within one year. Examples: Cash, Accounts Receivable, Inventory, Short-term Investments. Non-Current (Fixed) Assets: Assets that are used for long-term operations and not easily converted into cash. Examples: Land, Buildings, Machinery, Equipment. B. Based on Physical Existence: Tangible Assets: Physical assets that can be seen and touched. Examples: Furniture, Vehicles, Computers. Intangible Assets: Non-physical assets that represent legal rights or advantages. Examples: Patents, Trademarks, Goodwill, Copyrights. C. Based on Usage: Operating Assets: Used in daily business operations. Examples: Machinery, Inventory. Non-Operating Assets: Not used in regular operations but may generate income. Examples: Investments, Vacant Land. Key Points for EPFO Exam: Understand the difference between current and fixed assets. Know examples of tangible and intangible assets. Be clear about how sales contribute to business revenue and accounting records.