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Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

To state : The primary difference between current assets and other assets. Introduction: The users of financial statements review the financial statements of the company and perform appropriate analysis to take appropriate decisions, whenever required. ‘ Balance Sheet ’ shows the liabilities, assets and equity of a company at a particular point of time. Assets are the items that the company own, liability is the obligation of the company and equity is the net assets, i.e., the difference between the assets and the liabilities. It helps the users of financial statements to perform appropriate analysis and evaluate the financial position of a company. Assets Liabilities Equity Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Current assets are convertible to cash and equivalents within a year to pay off current liabilities and cover up current expenses. Other assets include non-current assets and intangible assets that aren’t convertible to cash within a year. They are held for a long term as a purpose of investment.

To state : The primary difference between current assets and other assets. Introduction: The users of financial statements review the financial statements of the company and perform appropriate analysis to take appropriate decisions, whenever required. ‘ Balance Sheet ’ shows the liabilities, assets and equity of a company at a particular point of time. Assets are the items that the company own, liability is the obligation of the company and equity is the net assets, i.e., the difference between the assets and the liabilities. It helps the users of financial statements to perform appropriate analysis and evaluate the financial position of a company. Assets Liabilities Equity Assets are the items that the company own. These are further classified as current and non-current assets wherein current assets are convertible to cash and equivalents within a year and non-current assets aren’t convertible to cash within a year. Current assets are convertible to cash and equivalents within a year to pay off current liabilities and cover up current expenses. Other assets include non-current assets and intangible assets that aren’t convertible to cash within a year. They are held for a long term as a purpose of investment.

Solution Summary: The author explains the primary difference between current assets and other assets. The balance sheet shows the company's liabilities, assets, and equity at a particular point of time.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

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Chapter 4, Problem 2.1STQ

Chapter 4, Problem 2.3STQ

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Chapter 4 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

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