Current and Noncurrent Assets Paper

University of PhoenixOctober 12, 2009ACC/400IntroductionThe purpose of this paper is to conduct a comparison of authentic and non topical pluss; in addition this paper will as well explain order of liquidity and how the liquidity applies to the quietness sheet. received and back(prenominal) AssetsAccording to Kimmel, Weygandt, & Kieso, (2007), two types of ar assets ar bear witness at all companies original assets and back(prenominal) assets. ongoing assets are assets that a confederacy expects to permute into cash within a class or less. Current Assets on a eternal sleep sheet item equals the sum of cash and cash equivalents, accounts receivable, salable securities, prepaid expenses and Inventory all fall under the neighborly class of current assets since most(prenominal) or all companies expect to switch over to cash within a year or less. obsolescent assets are assets that a company does not expect to transform into cash within a year or less. a ffable function Furniture, business equipment trademarks a copyrights fall under the noncurrent assets category. The fight between current and noncurrent assets is the time that it takes for those assets lowlife be born-again into cash, if they can even be converted into cash. Current and Noncurrent assets are usually listed on a company?s Balance Sheet. The Balance Sheet is i of the most important pecuniary statements prepared by companies on a yearly.

The Balance Sheet is an outline of the company?s financial condition. The balance sheet shows in a glass nonplus a summary of company assets. Liabilities and sharehold ers? equity. Many companies take current as! sets on balance sheets after a year from the selective information on the balance sheet. Kimmel, Weygandt, & Kieso (2007) Accounts receivable are current assets because companies will acquire them and convert them to cash within a year or less. Supplies are a current asset because the company expects to use them for... If you want to narrow a safe essay, order it on our website: OrderCustomPaper.com

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