Balance Sheets - Research Article from Encyclopedia of Management

This encyclopedia article consists of approximately 10 pages of information about Balance Sheets.
This section contains 2,790 words
(approx. 10 pages at 300 words per page)
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Assets

Current Assets.

Assets can be viewed as company-owned or controlled resources, from which the organization expects to gain a future benefit. Examples of assets for a typical company include cash, receivables from customers, inventory to be sold, land, and buildings. In order to make the balance sheet more readable, assets are grouped together based on similar characteristics and presented in totals, rather than as a long list of minor component parts.

The first grouping of assets is current assets. Current assets consist of cash, as well as other assets that will probably be converted to cash or used up within one year. The one-year horizon is the crucial issue in classifying assets as current. The concern is to

Assets Liabilities and Owners' Equity
Current assets 600,000 Current liabilities 280,000
Fixed Assets 90,000 Long-term debt 500,000
Property 800,000 Owners' equity 900,000
Intangible assets 50,000
Other assets 140,000
TOTAL ASSETS 1,680,000 TOTAL LIABILITIES AND OWNERS' EQUITY 1,680,000

present assets...

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This section contains 2,790 words
(approx. 10 pages at 300 words per page)
Buy the Balance Sheets Encyclopedia Article
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Encyclopedia of Management
Balance Sheets from Encyclopedia of Management. ©2005-2006 Thomson Gale, a part of the Thomson Corporation. All rights reserved.
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