Classified Balace Sheet Checkpoint

Classified Balace Sheet Checkpoint - and are currently...

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The current assets in a company are assets that are expected to be converted to cash or used for a business typically for one year. Other things that you might find under this group are the account receivables, supplies, cash, and short term investments. This group is important to a company because it explains what the company’s short term debt paying ability will be. Long term investments are usually in the form of stocks for bonds and are going to make money off of interest and are held for many years. It also includes buildings or land that the company is currently not using in its normal operations. This would help or hurt a company because it can give a financial security to a company and backing so a company would be able to get a loan if they need. Property, plant, and equipment also known as PPE are assets that are relatively long
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Unformatted text preview: and are currently being used in the company’s operations. The way that this can hurt a company is if the machinery breaks down all the time and are always repairing it can take on your cash flow. Another way that PPE can hurt your company is the deprecation in your land and building based on the economy, and then you are stuck with a building that is half as much as what you paid for it. A companies intangible assets are not physical they will usually include trademarks, patents and copyrights. With the company owning intangible assets it gives them the power to earn more money on the side by being able to sell exclusive products to a certain group of people. This will be able to help with the financial backing of a company and their net worth....
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