If an officer takes money from the company, it should be declared as a dividend or withdrawal and reflected as a reduction in net worth. Treating it in any other way leads to possible manipulation of the company's stated net worth, and banks and other lending institutions frown greatly upon it. Other Current Assets. Other Current Assets consist of prepaid expenses and other miscellaneous and current assets. Prepaid expenses are the uses of cash to purchase in full a good or service, the benefit of which will be received within the next 12 months.
Insurance is the most common form of prepaid expense.
The premium is paid prior to the receipt of the benefit. Cash has been depleted by paying a bill before the benefit from the purchase has been received. Miscellaneous and other current assets generally consist of small deposits or receivables. Non-current assets are defined as those that will not mature into cash within the next 12 months. Fixed assets represent the use of cash to purchase physical assets whose life exceeds one year.