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One of the most important concepts in accounting is of current assets and current liabilities. Thus, it is necessary to have complete knowledge about these two things. Many students face difficulty while drafting Current Assets & Current liabilities Homework Solutions and you may be also one of them. If this is the situation you are currently dealing with, then there is nothing to worry about. You will get the best advice here.
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The concept of current assets and current liabilities
Here is an idea about current assets and current liabilities-
Current assets – Current assets are all those assets that can be easily converted into cash within a short span of time (generally within one year). The examples of current assets are like cash, cash equivalents, prepaid expenses, marketable securities, accounts receivable etc.
Current assets are highly important in a business because they help in funding the day to day activities. Current assets are depicted in the balance sheet and they have widespread importance in the field of accounting.
Current liabilities – Current liabilities are actually the obligations or debts that an organization must pay in the near future. These debts are generally due within a period of one year. Examples are like accrued liabilities, short term debts taken by the company, accounts payable etc.
Current liabilities are highlighted in the balance sheet and these help in depicting a true picture of the entity. Without ascertaining the short term liabilities, financial position can’t be ascertained in a correct manner.
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Important aspects to be noted
Current assets and current liabilities are two very useful concepts. These are highly used for solving various kinds of accounting questions. Many students are unable to create a distinction between fixed assets and current assets, and, current liabilities and long term liabilities. If you are also having the same confusion then you should seek the help of experts for drafting Current Assets & Current liabilities Assignment Solutions.
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You may have a tough time dealing with this topic and may wish that a professional should write down Current Assets & Current liabilities Homework Solutions for you. The reason for feeling in this way is that there are too many things to comprehend. You should have the right knowledge, and then only you can decide that which assets and liabilities are of current nature.
There are lots of theoretical and practical questions based on the topic of current assets and current liabilities. Even if you will make a simple mistake then the whole answer would become wrong. Thus there is no harm in taking professional guidance in relation to Current Assets & Current liabilities Assignment Solutions.
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