discussion 5 - C an you tell us what k ind of plant assets...

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Can you tell us what kind of plant assets are used in your company or place of business? Do you have an estimate of the amount invested in those plant assets? Plant assets are resources that have physical substance (a definite size and shape), are used in the operations of a business, and are not intended for sale to customers. They are called various names – property, plant, and equipment; plant and equipment; and fixed assets. I don’t have the work experience in big company. But in the small company, it is really hard to distinguish the plant assets. Because of in many small businesses, the personal assets are same as the companies’ assets. For example, a SUV, it is used for company delivery also used for owner’s family. The retail store where I was in before, the plant assets include three computers, four shelves, two cabinets, and some tables and chairs. In a retail store, the current assets are always more than the plant assets. And the cost of the plant assets are not very expensive, total about $3000 ~ $4000. Why are liabilities classified on a balance sheet as current and non-current? Who wants to know? What is the benefit of knowing this information? The debts of a company reasonably expect to pay are different, so the liabilities classified on a balance sheet as current and non-current. Current liabilities are obligations that the company is to pay within the coming year or operating cycle, whichever is longer. It includes notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes, salaries and wages, and interest. The long-term liabilities are obligations that a company expects to pay after one year. Liabilities in this category include bonds payable, mortgages payable, long-term notes
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This note was uploaded on 04/11/2011 for the course FIN 504 taught by Professor Joe during the Fall '10 term at Keller Graduate School of Management.

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discussion 5 - C an you tell us what k ind of plant assets...

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