Author Question: Why are current assets listed before fixed assets on the balance ... (Read 87 times)

rachel9

  • Sr. Member
  • ****
  • Posts: 495
Why are current assets listed before fixed assets on the balance sheet?

Question 2

No federal law forbids age discrimination against people younger than 40.
 
 Indicate whether the statement is true or false



pikon

  • Sr. Member
  • ****
  • Posts: 361
Answer to Question 1

Current assets are assets that are cash or assets that can be converted quickly into cash and will be used in one year or less. Because cash is the most liquid asset, it is listed first followed by marketable securities-stocks, bonds, and other investments. Current assets are listed in the order of liquidity. The liquidity of an asset is the ease with which it can be converted into cash. On the other hand, fixed assets will be held or used for a period longer than one year. Because of the time period and the problems with converting fixed assets to cash, they are listed after current assets.

Answer to Question 2

True



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

For a complete list of videos, visit our video library