Assets expected to be used, sold, or converted into cash within one year. Common examples include cash, accounts receivable, inventory, and short-term investments. They’re essential for covering day-to-day operating costs and are listed at the top of the balance sheet under the assets section.
A long-term lease that essentially functions as a purchase. The lessee assumes ownership-like risks and benefits, and the asset is…
Short-term, highly liquid investments that can be quickly converted into a known amount of cash typically within three months. Examples…
Contingent liability is a potential obligation that may arise depending on the outcome of a future event, like a lawsuit…
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