Discuss the two main distinctions between assets on the balance sheet. The two main distinctions between assets on a balance sheet are current and long-term assets. Current assets on a balance sheet contain all the assets that can be likely to convert into cash within a year or quicker; such as cash, inventory or accounts receivable. Long-term assets are known as noncurrent assets that have a useful life of more than a year and usually last for several years. Long term assets are considered noncurrent and are illiquid, meaning they can be easily liquidated into cash.
Discuss reporting requirements for contingencies. Contingent liabilities must pass two thresholds before it can be reported on a financial statement. It must first be possible to estimate the value of the contingent...