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Is either type of asset, current or non-current, more desirable than the other?

User Hfs
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Final answer:

The desirability of current and non-current assets depends on different factors such as liquidity and long-term value.

Step-by-step explanation:

The desirability of current and non-current assets depends on various factors. Current assets, such as cash, accounts receivable, and inventory, are more desirable when a company needs quick access to liquidity. These assets can be easily converted into cash and are useful for meeting short-term obligations and funding day-to-day operations.

On the other hand, non-current assets, such as property, plant, and equipment, are more desirable for their long-term value and potential for generating future income. Non-current assets are typically used to support a company's operations over a longer period of time and may appreciate in value over time.

Ultimately, the desirability of current or non-current assets depends on the specific financial goals and needs of a company. It is important to maintain a balance between the two types of assets to ensure financial stability and flexibility.

User Suresh Pattu
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