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    What are Current and noncurrent assets and liabilities:

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    Current and noncurrent assets.

    o What are current assets?
    o What are noncurrent assets?
    o What differs between current and noncurrent assets?
    o What is the order of liquidity?
    o How does the order of liquidity apply to the balance sheet?

    Response is 1,029 words

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    https://brainmass.com/business/working-capital-management/current-noncurrent-assets-liabilities-364338

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    Current and noncurrent assets.

    o What are current assets?
    o What are noncurrent assets?
    o What differs between current and noncurrent assets?
    o What is the order of liquidity?
    o How does the order of liquidity apply to the balance sheet?

    Format your paper according to APA standards. You must cite all references. If you used an electronic source, include the URL. If you used a printed source or reference pages from the virtual organizations, attach a copy of the data to your paper.

    Response: As you know, we cannot write papers for you, but I will give you enough ideas and an outline to put this together in your own words and be successful in your assignment. Here is the citation I used which is something you will want to learn to cite. I cut and pasted right from the FASB codification so you can see how this literature is set up and be knowable about it.

    Source: FASB Codification (FASB ASC 210-10-05-4) (see how the citation uses dashes for each level, paragraph is last)
    05-4 The Overall Subtopic provides general guidance on the classification of current assets and current liabilities and discusses the determination of working capital. The balance sheets of most entities show separate classifications of current assets and current liabilities (commonly referred to as classified balance sheets) permitting ready determination of working capital.
    05-5 Financial position, as it is reflected by the records and accounts from which the statement is prepared, is revealed in a presentation of the assets and liabilities of the entity. In the statements of manufacturing, trading, and service entities, these assets and liabilities are generally classified and segregated; if they are classified logically, summations or totals of the current or circulating or working assets (referred to as current assets) and of obligations currently payable (designated as current liabilities) will permit the ready determination of working capital.
    05-6 The ordinary operations of an entity involve a circulation of capital within the current asset group. Cash is expended for materials, finished parts, operating supplies, labor, and other factory services, and such expenditures are accumulated as inventory cost. Inventory costs, upon sale of the products to which such costs attach, are converted into trade receivables and ultimately into cash again.
    45-1 Current assets generally include all of the following:
    • a. Cash available for current operations and items that are cash equivalents
    • b. Inventories of merchandise, raw materials, goods in process, finished goods, operating supplies, and ordinary maintenance material and parts
    • c. Trade accounts, notes, and acceptances receivable
    • d. Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year
    • e. Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business
    • f. Marketable securities representing the investment of cash available for current operations, including investments in debt and equity securities classified as trading securities under Subtopic 320-10
    • g. Prepaid expenses such as the following:
    o 1. Insurance
    o 2. Interest
    o 3. Rents
    o 4. Taxes
    o 5. Unused royalties
    o 6. Current paid advertising service not yet received
    o 7. Operating supplies.
    XBRL Elements
    45-2 Prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during the operating cycle. An asset representing the overfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Subtopics 715-30 and 715-60.
    XBRL Elements
    45-3 A one-year time period shall be used as a basis for the segregation of current assets in cases where there are several operating cycles occurring within a year. However, if the period of the operating cycle is more than 12 months, as in, for instance, the tobacco, distillery, and ...

    Solution Summary

    Discussion is in everyday language and includes many examples. The response (1,029 words) includes 12 pages of materials including sections cut and paste from FASB codification so you can see the how the authoritative literature is set up and referenced for this or similar work.

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