财务报表分析答Ch_04.docVIP

Chapter 4 Analyzing Investing Activities REVIEW Assets are the driving forces of profitability for a company. Assets produce revenues that compensate workers, repay lenders, reward owners, and fund growth. Current assets are resources or claims to resources readily convertible to cash. Major current assets include cash and cash equivalents, marketable securities, receivables, derivative financial instruments, inventories, and prepaid expenses. Our analysis of current assets provides us insights into a companys liquidity. Liquidity is the length of time until assets are converted to cash