Acc220 Week 3 Asignment Essay

442 WordsApr 3, 20132 Pages
A Classified Balance Sheet All of the accounts which are contained in a classified balance sheet are arranged in an order that makes retrieving the information from that sheet much easier for those who need to utilize them for reviewing, monitoring, storing and retrieving such details. Current Assets Just as in real estate, cash, cash, cash is necessary for the survival of any business regardless if large or not so large. Depending upon the size, length of time in business and type of business, banks may not even lend funds to an inquiring business without some existing current assets to show and / or match. Without cash, how would anyone be able to conduct business, pay its employees, purchase supplies, pay overhead etc. Assets can be shortly defined as “something of value” and current meaning “at present”. Current assets simply mean anything such as cash itself, any accounts which a company have received funds from another, any such collateral, securities/stocks, product on hand including, but not limited to any kind of policy which can converted into a cash option. Long Term Investments Long term investments come in several forms such as stock portfolios, bond certificates, CDs, mutual funds including cash. Generally, long term investments are stored and managed by finance professionals and or the independent owner. These type of investments typically fall under an “interest bearing account” status because the deposits is large and the length of time before one is expected to withdraw funds is long as well. Having long term investments is wise for any company because it may be important to need cash or have current assets which can be liquefied into cash for immediate debt relief or other emergency needs. Property, Plant and Equipment Very rarely will you find a business which does not have some kind of value in Property, plant and

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