Assets

flow assets ar items on a balance sheet. nurse to Investorwords, accepted assets equal ??the sum of exchange and cash equivalents, accounts receivable, inventory, merchantable 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 ar substantially liquidated. Additionally, current assets atomic number 18 a source of gold 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 shock of appearance a year. By contrast, non-current assets are not ??easily convertible to cash or not expected to live on cash inside the next year, ? (Investorwords, 2008). Examples of non-current assets include fixed assets, leasehold improvements, and impalpable assets, (Investorwords, 2008). The differences amongst current and no n-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 commonwealth and a building as the center of its business, that guild is not going to convert the solid ground 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 belong to a company depreciates over time. This is another characteristic of some(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 minus current liab! ilities. Current and Noncurrent Assets Current...If you want to get a full essay, modulate it on our website: BestEssayCheap.com

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