Changes

Assets and liabilities are classified as '''current''' and '''non-current'''.

Assets and liabilities are classified as '''current''' and '''non-current'''.

*Current assets are those which are cash or are highly liquid (i.e., can easily be converted to cash); these include short-term investments (such as certificate of deposits), accounts receivable, inventories, and prepaid expenses.

*Current assets are those which are cash or are highly liquid (i.e., can easily be converted to cash); these include short-term investments (such as certificate of deposits), accounts receivable (less any estimated amounts for uncollectible accounts), inventories, and prepaid expenses.  If a company has a long-term investment with a portion due to be collected in the current year, that portion is classified as a current asset.

*Non-current assets include property, plant, and equipment (less amounts for accumulated [[depreciation]] and [[amortization]]), and long-term investments (such as loans made to other entities).

*Non-current assets include property, plant, and equipment (less amounts for accumulated [[depreciation]] and [[amortization]]), and long-term investments (excluding the portion due in the current year).

**For non-profit/not-for-profit entities, this category includes assets which are restricted for use (usually for a specific purpose).  The restriction can either be by the donor, or the entity can choose to restrict the asset's use; either way it must be shown separately from unrestricted assets.

**For non-profit/not-for-profit entities, this category includes assets which are restricted for use (usually for a specific purpose).  The restriction can either be by the donor, or the entity can choose to restrict the asset's use; either way it must be shown separately from unrestricted assets.

*Current liabilities are those which are expected to be paid within one year or less; these include accounts payable, taxes currently due, and the current portion of long-term liabilities.

*Current liabilities are those which are expected to be paid within one year or less; these include accounts payable and taxes currently due.  If a company has a long-term liability with a portion due in the current year (such as a building mortgage), that portion is classified as a current liability.

*Non-current liabilities include capital leases and mortgages (excluding the portion due within the current year).

*Non-current liabilities include capital leases and mortgages (excluding the portion due within the current year).