➤ How are assets classified on financial statements?
Accountants group assets by liquidity and purpose. Current assets include cash, short-term investments, receivables, and inventory. Noncurrent (long-term) assets include property, plant, equipment, long-term investments, and intangible assets like patents and goodwill. Classification affects reporting, ratios, depreciation and amortization on the balance sheet and informs liquidity and solvency analysis.
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