Textbook Notes (368,666)
Canada (162,055)
MGAB01H3 (126)
Liang Chen (50)
Chapter 2.3

chapter 2.3

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Financial Accounting
Liang Chen

Chapter 2 Assets Assets are the resources that a company owns that will provide future economic benefits. Assets can include resources whose benefits will be realized in a year (current), or more than a year (noncurrent). Noncurrent is divided into long-term investments, PPE, and intangible assets. Other assets that are reported separately include noncurrent receivables, future income tax assets, and property held for sale. Current assets are expected to be sold or converted into cash within a year. Common types of current assets include cash, short-term investments, receivables, inventory, supplies, and prepaid expenses. Long-term investments are generally multi-year investments in debt (notes, bonds) and equity (shares) of other corporations. Property, Plant, and Equipment J are tangible assets with relatively long useful lives that are currently being used in operating business. This category includes land, buildings, equipment, and furniture. They are usually listed in the balance sheet in their order of permanency. Because PPE benefit future periods, their cost is matched to revenues over their estimated useful lives through a process called depreciation. Assets that are depreciated should be reported on the balance sheet at cost
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