Assets must be classified as current or non-current on the balance sheet.

Name: Assets must be classified as current or non-current on the balance sheet.
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Question

Quizplus · Accepted Answer

This is because current assets are those that are expected to be converted into cash within a year, whereas non-current assets are those that are expected to have a longer-term benefit for the company. Classifying assets in this manner helps investors and analysts assess a company's liquidity and financial health.

Assets Must Be Classified as Current or Non-Current on the Balance