Question: Can the same item be considered a long term asset in one company and a current asset in another? Is the asset's intended use

Can the same item be considered a long term asset in one

Can the same item be considered a long term asset in one company and a current asset in another? Is the asset's intended use taken into consideration? For example, can an automobile be classified as a long term asset in one company and a current asset in another? Can you think of more examples? 2. TQ: What is the difference between owner's capital and liabilities as a source of funding company's assets? Which one do you think is better (discuss the pros and cons) 3. TQ: Why is it important to know whether a liability is short term or long term?

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1Longterm asset are the asset of a company which are permanent in nature and which are not high liquidity in nature Examples are property plant and Equipment Building Automobiles While current asset i... View full answer

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