Running Head: Current and Noncurrent Assets Paper

Current and Noncurrent Assets Paper

Name

ACC/400 - Week One

Instructor's Name: Name

Date

Introduction

Current and non-current assets are important items to evaluate a balance sheet. The following paper evaluates the meaning and differences between current and non-current assets. In addition to that, the paper will describe the order of liquidity and its application in a balance sheet.

A company's balance sheet includes both current and non-current assets. The current assets are defined as the total sum of:

Cash and cash equivalents - Cash in hand or cash at bank

Accounts receivables - Amount that is expected to be collected from the customers within the current accounting cycle

Inventory - Goods or material in-stock or under...