Comparing and Contrasting Current and Noncurrent

equivalence and contrasting circulating(prenominal) and superannuated Troy Martinez ACC/400 September 25, 2010 Debra Latimore University of Phoenix Comparing and contrasting current and back(prenominal) What ar current assets? Current assets ar also known as liquid assets. The most parking area of current assets nominate be found in the Accounts Receivables department. They can be found in the form of invoices. Current assets are any assets that can be turned into notes in slight than a year. Other forms of current assets are things such(prenominal) as inventory, short-term investments, prepaids, and, of course, cash (Williams, Haka, & Bettner, 2005). As a rule, companies enchant current assets as anything that can be converted into cash within an operating cycle. For most companies that is a year. Other companies assume an operating cycle of more than a year, other less than a year. It is mostly dependent upon their operating cycle. What are noncurrent assets? Noncurrent assets are anything that is not a current asset. Things such as long-term investments, intangible assets, and fixed assets. A noncurrent asset is something that cannot be turned in cash within a normal operating cycle (Williams, Haka, & Bettner, 2005).

What differs between current and noncurrent assets? The biggest difference between current and noncurrent assets is that hotshot can be converted into cash within a normal operating cycle, current assets, and the other cannot, noncurrent assets. As stated before current assets can be exchange off to give the company operating cash to keep the company from being insolvent (Williams, Haka, & Bettner, 2005). Noncurrent assets can be used as collateral to attain a loan, I think. What is the order of liquidity? The order of liquidity is the order in which items appear on the dimension sheet according to its solvency (Williams, Haka, & Bettner, 2005). This counseling a person looking at a balance sheet will know... If you want to get a wide of the mark essay, order it on our website: Orderessay

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