ACC 100 Chapter Notes - Chapter 2: Current Asset
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•Reports an entityʼs ﬁnancial position at a point in time
•To improve the understandability of information for external users, accountants group
similar assets and similar liabilities together
•List in order of liquidity
A = L + E
Any assets that do not meet the deﬁnition of a current asset are classiﬁed as long-term
or non-current assets. Three common categories of long-term assets are: investments,
property, plant, and equipment; and intangibles.
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