contigent liabilities (1).docx - Running Head CONTIGENT...

Running Head: CONTIGENT LIABILITIES 1
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CONTIGENT LIABILITIES 2
The two assets in the balance sheet include current and non-current assets which combine
to form a company’s total assets. Current assets are considered short term because they are
resources that a company needs to run its day to day operations and pay current expenses. Non-
current assets are long term investments that have a useful life that is more than a year and
cannot be converted to cash easily.
The current assets include items such as cash and cash equivalents which may be used to
pay a company’s short-term debt. The current assets may also include accounts receivable which
are expected payments from customers. Inventory includes raw materials and finished goods that
can be sold quickly thus are termed as current assets. Non-current assets are divided into tangible
and intangible assets. The tangible assets include property, plant and equipment as they are