1, generalized liquidity. Refers to all current assets of an enterprise, including cash, inventory (materials, products in process and finished products), accounts receivable, securities, prepayments and other items. All the above items are necessary for business operation, so working capital has a popular name, called working capital.
2. Liquidity in a narrow sense = current assets-current liabilities, that is, the so-called net liquidity.
3. Liquidity includes production funds, reserve funds, finished products funds and settlement funds. Production refers to the funds occupied by enterprises in the production stage, including products and self-made semi-finished products, as well as prepaid expenses. Reserve funds refer to the funds occupied by enterprises in the reserve stage, including the funds occupied by raw materials and main materials, auxiliary materials, fuel, packaging materials, repair spare parts and low-value consumables in the process of storage and use, as well as the funds occupied by materials in transit.
How to make accounting entries when obtaining working capital loans from banks?
Working capital loans obtained by banks are generally not more than one year, which belong to short-term working capital loans and should be accounted for through short-term borrowing subjects. When receiving a loan, a corresponding detailed account should be set up according to the loan bank.
1, working capital loan
Loans issued to meet the short-term capital needs of producers and operators in the process of production and operation and ensure the normal operation of production and operation activities can be divided into short-term working capital loans within one year and medium-term working capital loans with a term of one to three years.
2. Working capital loan
Strong liquidity, suitable for industrial and commercial enterprise customers with short-term capital needs. Under normal circumstances, according to the loan management policy of "safety, liquidity and profitability", banks make decisions on whether to lend, whether to lend more or less, the loan term and interest rate after investigating and approving the credit status and loan methods of customers.
3. Bank loans
It refers to an economic behavior that banks lend funds to people in need at a certain interest rate according to national policies and return them within the agreed time limit. Generally, you need to provide guarantee, house mortgage, income certificate and personal credit information to apply.
4. Accounting entries
Refers to the record that determines the account name, account direction and amount involved in each economic business in advance. An accounting entry consists of three elements: the direction of borrowing and lending, the name of the corresponding account (subject) and the amount to be recorded. According to the number of accounts involved, it can be divided into simple accounting entries and compound accounting entries.
As for which items of working capital are answered here first, how to make entries of working capital items in actual accounting, if you haven't fully mastered finance, you should learn more relevant knowledge to ensure that the company's monthly accounts are done well. If you have any questions in the learning process, you can also ask the accounting teacher on the website to answer them.