Assets - Assets Assets are categorized as current(CA or...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Assets 1 Assets are categorized as current (CA) or fixed (FA). Assets are listed on the balance sheet in order of liquidity. Frequently, more than one timeframe is presented for comparison. Current assets are expected to be converted to cash within the year. Fixed assets have a relatively long life, and can be tangible (e.g. building) or intangible (e.g. patent).
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Liabilities are categorized as current (CL) or long- term (LTD). Liabilities are also listed in order of liquidity. Current liabilities are expected to be paid within the year, and will require cash. Long-term liabilities have maturities longer than one year. The difference between assets and liabilities is owner’s equity (E).
Background image of page 2
The Current Accounts 3 The relationship between current assets and current liabilities is critical to the ongoing operations of the firm.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Current Assets 4 Cash on hand or in the bank Short-term investments
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

Page1 / 11

Assets - Assets Assets are categorized as current(CA or...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online