Classification of Assets: Maximus Case Study

501 Words Feb 1st, 2018 2 Pages
There are no inventories listed, but otherwise these are listed in the proper order.
The company classifies its assets in a somewhat unusual way. The current assets are broken down well, including separate line items for billed and unbilled accounts receivable. However, there is no subtotal for long-term assets, which is unusual. The line items outside of current assets are as one would expect for long-term assets: property and equipment (net), capitalized software (net), goodwill, intangible assets (net), deferred contract costs, deferred income taxes, deferred compensation plan assets and other.
Cash equivalents are money market securities. Typically, these have maturities less than three months, or are cashable on demand. Such securities can be liquidated so quickly that they are considered for accounting purposes to be equivalent to cash.
The company's total current liabilities are $163.893 million at the end of the most recent fiscal year (September 30, 2011).
The company's total current liabilities were $164.688 million at the end of the 2010 fiscal year.
The information contained in financial statements is important for a few different reasons. Potential creditors need to know what the credit quality of the organization is.…
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