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| Topic: |
Miscellaneous
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| Number of pages / Number of words: |
14 / 3745 |
Essay's paper body
Utilities and truckers receive quick payments (fast turnover of receivables, little inventory) and have slow payables since they receive generous terms of trade, so that they can have ratios of 1 or less and still be completely liquid and solvent.
Long Term Assets consist principally of Property, Plant, and Equipment and Capitalized Software Development Costs...
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Both these items are not recorded as an expense but capitalized when put into service or as the software is completed. These long term assets are then depreciated or amortized over their expected economic life and hence recorded as an expense. Uneconomic or obsolete property or capitalized software which doesn't work or has been outflanked by competition should be written off...
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