Examples Of Current Assets For Service & Production Bases Businesses

Examples of current assets can be different according to the business nature and industries. Here in this blog post, we will discuss the current asset examples on the bases of service and production.

What Is Service Base Business

A service bases business primarily offers services instead of physical products or goods. This business makes revenue by offering services such as:

Giving advice
Training
Providing solution
Analysis
Supporting through their knowledge.

Service bases businesses focus on building strong relationships with clients by understanding their requirements and fulfilling their objectives. Examples of service bases businesses:

Accounting firms
Laws and legal offices
Marketing agencies
Consulting firms
Software house, etc.

Examples Of Current Assets In Service Base Business

Following are the most common examples of short-term assets in the services bases business:

Cash that is held for business operations
The receivable amount by clients
Prepaid service contract
Prepaid maintenance contract cost
Prepaid consulting fees
Work in progress
Training fees
Software license
Subscription fees
Prepaid rent
Prepaid advertising
Advance fees for the conference
Warranties, etc.

What Is Production Base Business

Examples Of Current Assets In Production Base Business

Production businesses are those businesses that involve in manufacturing goods and tangible products that they sell to make revenue. These businesses use machinery and equipment to make the products.

Most common units in a business are the creation unit, assembly unit, and packaging unit. These business needs a wide range of machines, materials, and labor to make the production process complete.

Manufacturing, construction, agriculture, and technology industries are the most common examples of production bases businesses.