Checkpoint Classified balance sheet

Checkpoint Classified balance sheet - used to fund the...

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On a classified balance sheet under the current assets, you will find information pertaining to assets that can be converted to cash within the first year of business. These would include: inventory that would be sold to consumers, cash on hand, receivables, and short term investments. This information will determine if a company has enough money to operate on a daily basis for at least the first year or so. Long-term investments would include: investments into stocks of other companies, land purchases and building purchases that are not used in the business activities but for other purposes. These are funds that are collected by the company from outside resources that could be
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Unformatted text preview: used to fund the company. If the long-term investments are not yielding any profit for the company to use, then it could cause failure in the long run. Property, plant, and equipment would include: land, buildings, equipment, furniture, and machinery that the company owns that could be used as assets in a business. If a company needed to, they could sell off some of these to cover expenses to keep the business afloat. An intangible asset could include: patents, copyrights, trademarks, or trade names that are exclusive to a company for a specified amount of time. These assets cannot be seen, touched or measured but develop value over a long period of time....
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This note was uploaded on 06/13/2010 for the course ACCOUNTING 220 taught by Professor Connie during the Spring '10 term at Phoenix School of Law.

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