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Topic: Business
Number of pages / Number of words: 3 / 589
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The main difference between current assets and noncurrent assets is a noncurrent asset will not be consumed or converted into cash within one year. Non-current assets are also listed separately from current assets on a company’s balance sheet.

The order of liquidity is how fast an asset can be changed to cash...


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The top portion of the balance sheet should list the company's assets in order of liquidity, starting with items held primarily for conversion into cash and ranking them in the order of their expected conversion. Then follow with items held primarily for use in operations but that could be converted into cash, and rank them in the order of liquidity...


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