Acc 220 week 3 day 5 Classified Balance Sheet

Acc 220 week 3 day 5 Classified Balance Sheet - '...

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Most accounting balance sheets classify a company's assets and liabilities into distinctive groupings such as Current Assets;  Property, Plant, and Equipment; Current Liabilities; etc. These classifications make the balance sheet more useful”  (AccountingCoach, 2009).  Current assets play a big role on the balance sheet.  Current assets represent the assets the organization expects to sell or use within the following 12 months.  Current assets are  crucial in measuring the position of the organizations liquidity.  In addition, they are used to evaluate the organizations financial  strength in the event of an economic crisis. This part of the balance sheet provides an analysis of the organizations stability and  performance.  On a balance sheet current assets also include cash equivalents and cash. The organization holds in money market accounts,  banks, CD’s, and savings accounts and this is what cash and cash equivalents represent.  
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  • Spring '10
  • aliciahubbard
  • Balance Sheet, Current Assets, MYSMP

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