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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

The three categories of assets. Introduction: ‘ 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. ‘Balance Sheet’ has three components of a company at a particular point of time. These are: Assets are the items that the company own. Liability is the obligation of the company. Equity is the net assets i.e. the difference between the assets and the liabilities. 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 to pay off current liabilities and cover up current expenses. Non-current assets aren’t convertible to cash within a year They are held for a long term as a purpose of investment. Intangible assets are the assets that an individual cannot see, touch or feel, though holds value as they provide future benefits to the company.

The three categories of assets. Introduction: ‘ 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. ‘Balance Sheet’ has three components of a company at a particular point of time. These are: Assets are the items that the company own. Liability is the obligation of the company. Equity is the net assets i.e. the difference between the assets and the liabilities. 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 to pay off current liabilities and cover up current expenses. Non-current assets aren’t convertible to cash within a year They are held for a long term as a purpose of investment. Intangible assets are the assets that an individual cannot see, touch or feel, though holds value as they provide future benefits to the company.

Solution Summary: The author explains the three categories of assets in a company's balance sheet: assets, liabilities, and equity. Current and non-current assets are convertible to cash and equivalents to pay off current liabilities.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Healthcare Finance: An Introduction to Accounting and Financial Management

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