CLASSIFICAT

ION OF
ASSETS
 Assets are
subclassified as
current asset and
non-current assets.
 CURRENT ASSETS
Classified and presented
according to liquidity with
the most liquid followed by
those with lesser liquidity.
 Liquidity -
how quickly an
investment can be sold
without impacting its
price
The more liquid an investment is, the
more quickly it can be sold
Classification of
Current Assets:
Cash
Includes coins, currencies,
checks, banks deposits and
other cash items readily
available for use in the
operations in the business.
Cash Equivalents
Short-term investments that
are readily convertible to
known amounts of cash w/c are
subject to an insignificant risk
to changes in value
Marketable Securities
Stocks and bonds purchased
by the enterprise and are to
be held for only a short span
of time.
Trade and other
Receivables
Include the amount
collectible from any of
the following accounts:
Accounts
Receivable
The amount collectible
from the customer to
whom sales have been
made