Assets

flow assets ar items on a balance sheet. proof to Investorwords, accepted assets equal ??the sum of exchange and cash equivalents, accounts receivable, inventory, marketable 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 slowly liquidated. Additionally, current assets be a source of cash for most companies. The importance of current assets to businesses is that these assets fund daily operations and expenses. Not only are current assets expected to be turned into cash, they may be sold, or consumed in bruise of appearance a year. By contrast, non-current assets are not ??easily convertible to cash or not expected to drive cash inside the next year, ? (Investorwords, 2008). Examples of non-current assets include fixed assets, leasehold improvements, and nonphysical assets, (Investorwords, 2008). The differences among current and non-current assets include time and form. Current assets are intended for engage within one year, while non-current assets are not. If a fraternity owns knock down and a building as the center of its business, that guild is not going to convert the domain 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 depreciates over time. This ! is another characteristic of more 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 negatively charged current liabilities. Current and Noncurrent Assets Current...If you want to get a full essay, modulate it on our website: OrderCustomPaper.com

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