Acccounting 400 Week 1 Individual

"Assets are defined as broad resources, having their own distinctive economic value that might be owned and facilitated to produce income for the business. Assets are traditionally shown on the right-hand side of a company balance sheet, and are largely made up of two very distinct divisions, each having their own merits and utilities to the business. The two types of assets are current assets and non-current assets."(Tondom,2010)A current asset is a type of asset that can be sold or can generate some sort of income within a foreseeable amount of time, such as within a fiscal year. Examples of a current asset is cash, accounts recieveable, paid expenses. A non current asset is on that is not able to be cashed in within the foreseeable future , it is a long term asset such as fixed assets, intangible assets, long term notes, receivables. These noncurrent assets can not be liquid within a fiscal year. Tondom, 2010, Bright hub, What is the difference between current and non current assets?retrieved may 7th, 2013http://www.brighthub.com/office/finance/articles/76452.aspx

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?
Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus, cash is always presented first, followed by marketable securities, then accounts receivable, then inventory, and then fixed assets. Goodwill is listed last.

The approximate amount of time required to convert each type of asset into cash is noted below: Cash. No conversion is needed. Marketable securities. A few days may be required to convert to cash in most cases. Accounts receivable. Will convert to cash in accordance with the company's normal credit terms, or can be converted to cash immediately through