I need a substantive comment on this post: There is a big difference between current...
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Accounting
I need a substantive comment on this post:
There is a big difference between current and long-term assets and liabilities. Current assets are resources that a company owns and expects to convert into cash or consume within one year. Examples of current assets include cash and cash equivalents, accounts receivable (money owed by customers), inventory, short-term investments, prepaid expenses, etc. Long-term assets are resources that a company expects to hold for more than one year or beyond the normal operating cycle of the business. They are not intended for immediate conversion into cash. Examples of this can include but are not limited to property, equipment, patents, etc. Current liabilities are debts or obligations that the company has that need to be addressed in the short term. Long-term liabilities are obligations that need to be addressed in the long term. Examples of this can be long-term loans, bonds, pension obligations, etc. It is important to distinguish current and long-term assets and liabilities to prioritize your business debts.
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