Assets

flow assets ar items on a balance sheet. label to Investorwords, accepted assets equal ??the sum of exchange and cash equivalents, accounts receivable, inventory, vendible securities, prepaid expenses, and other assets that could be converted to cash in less than one year, ? (2008). If a union goes bankrupt, current assets be slow liquidated. Additionally, current assets ar a source of capital for most companies. The importance of current assets to businesses is that these assets fund daily trading operations and expenses. Not only are current assets expected to be turned into cash, they may be sold, or consumed in transgress of appearance a year. By contrast, non-current assets are non ??easily convertible to cash or not expected to bring cash inside the next year, ? (Investorwords, 2008). Examples of non-current assets include fixed assets, leasehold improvements, and intangible assets, (Investorwords, 2008). The differences in the midst of current and non-cu rrent assets include time and form. Current assets are intended for engage within one year, while non-current assets are not. If a fraternity owns degrade and a building as the center of its business, that guild is not going to convert the trim and building, non-current assets, to cash within a year. The company keeps both the land and building for bimestrial time-periods.

Another example of the difference between the two types of assets is equipment, or machinery. The company uses the equipment for its daily operations, and will not be do with the equipment within a year. The equipment is a non-current asset. Equipment and machinery be to a company dep! reciates over time. This is another characteristic of many an(prenominal) non-current assets. Current assets do not depreciate within a year. ------------------------------------------------- Dividing assets and liabilities into current and non-current allows for the counting of working capital. This is the amount of current assets negative current liabilities. Current and Noncurrent Assets Current...If you want to get a full essay, modulate it on our website: BestEssayCheap.com

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