Balance Sheet-Indicators of success or failure
Not what you're looking for?
Please explain what information would be found in each of the following groupings on a classified balance sheets, and how what data could indicate the future success or failure of a business.
1. Current assets
2. Long-term investments
3. Property, plant, and equipment
4. Intangible assets
Purchase this Solution
Solution Summary
The solution describes what parts of a balance sheet can indicate success or failure of a firm.
Solution Preview
First, with regards to balance sheets, the data contained within is useless unless comparable to something. In other words, if I stated that Company ABC had current assets of $3,000,000 the information is completely useless unless we have something to compare the figure to like Company ABC's current liabilities or the industry averages. So, having stated that balance sheet amounts are only useful as comparisons:
The amount of current assets of a firm is useful because we can compare it to current liabilities to determine a firm's ability to pay short ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.