ACC 400 Current and Noncurrent Assets

**HERE IS A SAMPLE OF THE ESSAY***

Assets are resources owned by an organization. An asset is a tangible or intangible product of value that a company can own, sell, or trade for a monetary gain. Assets assist a company by giving them a form of collateral when excess funds are not available. Assets can be used by a business to purchase goods from another company in the event that a startup company that does not have the necessary cash for payment. Assets are constantly evaluated and reevaluated throughout the course of a company's lifespan, causing fluctuations, and a potential rise and fall of the monetary value of the business's assets. Assets are not restricted to businesses without the capital to pay for items. Assets can be used by any business or company that has a set of goods that can be transferred to another group or entity as a form of payment. Assets can be divided into two different categories; current assets and noncurrent assets. Each category has its own strengths and weaknesses, depending on the situation in which they may be applied (Kimmel, Weygandt, & Kieso, 2007).

A current asset is an item that an organization anticipates will turn into cash or be used up within a year. Current assets are what a company will use to make a purchase as soon as possible and may turn a profit by using their assets immediately. Current assets can be items such as short-term investments, inventory, and prepaid insurance. Noncurrent assets are

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Prepare a 700- to 1,050-word paper comparing and contrasting current and noncurrent assets. In your paper, address the following:

What are current assets?

What are noncurrent assets?

What differs between current and noncurrent assets?

What is the order of liquidity?

How does the order of liquidity apply to the balance sheet?