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12y ago

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Is inventory an example of a long term asset?

Inventory is usually stocked for short term time period for one to three months so it is a current asset and never be considered as long term asset.


Explain why both short-term and long-term planning are important?

short term is financial asset used to run business at the market level whereas longterm is to invest to get maximum profit.


What is the difference between an Operating asset and a financial asset?

A financial asset are short term investments in private equity, bonds, hedge funds, and other type of securities. Operating assets are investments that include all internal and external factors within a company. Operating assets hold more value than a financial asset.


Merchandise inventory is reported as a long-term asset on the balance sheet?

7


Is short term investments an asset?

yes it is


What is asset impairment?

Asset impairment is a financial term. When the projected worth of the asset is less than its current worth, the asset is considered to be impaired.


Is merchandise inventory is a long-term asset on the balance sheet true or false?

False


How does Business asset financing work?

Business Asset finance uses a company's cash balance sheet assets, such as short-term investment, inventory, and accounts receivable, to obtain money or an advance loan. The business borrowing the money must give the lender an interest as security on the asset.


Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventory?

Current ratio


How do you classify assets?

Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.


What is the difference between asset management and strategic asset management?

"Strategic asset management" could refer to "strategic asset allocation", i.e. long-term asset allocation - whereas "tactical asset allocation" refers to short-term investments.


What is the asset-offset of an accounts receivable?

Yes. Accounts receivable, or receivables for short, represent a financial obligation to the organization and are represented on the asset side of the balance sheet.Generally yes, most of your accounts receivable will be listed as a current asset. To make sure however remember the rule of current assets. Current assets are anything that can be turned into "cash.Accounts receivable is considered a short term asset.