Current Assets Paper

Current and Non-current Paper

Chiikena Ester

Acc\400

04\09\12

Marissa Portugal

Current and Non-current Paper

When opening a business of your choice, business financial statements are very critically important to tracking the profits and losses of a company or organization. Figures and statistics are decided by the companies’ decision. When the company records, they record and compare at a different time. Accounting knowledge is the inner most of the business. Understanding the basic concept of debits and credits are a growing company. Companies often expand to a more complex form of departments to handle a larger in flow of events. The department is well staffed with enough employees to fit the demands and to keep track of how well the business is performing. The awareness of the fact that the difference between current and non-current assets should be explored when making sure that business financial operation is running properly. With in an organization the organization should understand how the order of liquidity is applied to the balance sheet and understand its purpose. The basic concept of assets is the accounting department concerns. A business owns anything that’s called an asset and they own it then and they own it latter as they develop. An asset makes profit to the business and the business will be successful. Assets are two kinds of groups called current and non-current assets. Examples of current assets are cash, account receivables, suppliers, and inventory. On a financial balance sheet current assets are listed and revenue and future worth to the organization. Non-current assets are assets that are not converted to cash or not expected to become cash within the next year. A non-current asset takes longer than an accounting cycle before turning into cash. Non-current assets supports form profits for the company. An example of non-current assets is property, land, equipment and vehicles. Non-current assets are long-term assets and...