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- Title
A Note on Current Assets.
- Authors
Goldberg, L.
- Abstract
The article clarifies the use of the terms "current assets" and "current liabilities" in financial accounting. The use of these terms has become so widespread, at least in English-speaking countries, that people are apt to take it for granted that their meaning is not only specific, but also universally known. However, a consideration of some of the definitions suggests that even the most authoritative of them lack precision in some respects; it appears that little attention has been given in accounting literature to the analysis or even to the differentiation of the concepts involved in the use of the terms either as expressions or as bases for classification. The purpose of framing a definition of such terms is to establish a criterion or set of criteria by reference to which the adequacy or inadequacy of a certain practice may be gauged. In considering current assets and current liabilities, people are dealing not with natural phenomena but with measures of the results of human activities such as assets and liabilities, which are economico-legal constructs, and a definition in this area is a classificatory device made by human beings and based on human opinions and attitudes.
- Subjects
CURRENT assets; CURRENT liabilities; ACCOUNTING; TERMS &; phrases; FINANCIAL instruments; FINANCIAL futures
- Publication
Abacus, 1965, Vol 1, Issue 1, p31
- ISSN
0001-3072
- Publication type
Article
- DOI
10.1111/j.1467-6281.1965.tb00310.x