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    Current Vs. Noncurrent Asset Or Liability

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    -What differentiates a current asset or liability from a noncurrent asset or liability?
    -Why are accounts receivable listed before inventory on the balance sheet?
    -Explain what effect the payment of dividends has on net worth?
    -Explain what effect the repurchase of stock from shareholders has on net worth?

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    -What differentiates a current asset or liability from a noncurrent asset or liability?
    A current asset is an asset that is received (collected upon) or can be converted to cash within one year's time. A noncurrent asset is also called a permanent or fixed asset. It is an asset that isn't readily converted to cash. Current assets include cash, checking/savings accounts, accounts receivable, inventory, and other items that are highly liquid. A noncurrent asset is something that can't be converted quickly. A machine, land, and other types of property are noncurrent (fixed) assets. The same holds true for liabilities. Liabilities that are due within one year's time are current liabilities. Accounts ...

    Solution Summary

    This solution discusses various asset and liability topics, including current and noncurrent assets and liabilities, inventory, dividends, and stock repurchases. Includes 2 references.