Current asset s include cash,inventory,and accounts receivable. Examples offixed assetsare buildings,real estate,and machinery. In addition,the resource allocation function is concerned with intangible assets such as goodwill,patents,workers,and brand names. Assets are ordinarily subdivided into current assets and noncurrent assets.
People also ask
Is land considered a current asset?
Current assets are a business most liquid assets and are expected to be converted to cash within one year or less. Because land is one of the longer term investments that a business can own, it is categorized as a fixed asset on a business balance sheet.
Which of the following is a current asset?
Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses. and other liquid assets that can be readily converted to cash.
Is a customer a current or non current asset?
Since most customer payments are converted to cash within a year, it’s listed as a current asset. If a good or a service takes more than a year to convert to cash, it would be considered a long-term asset, and wouldn’t be reported under current assets. Instead, it would be classified as a non-current asset.
What are’current assets’?
What are ‘Current Assets’. The term current assets represents all the assets of a company that are expected to be conveniently sold, consumed, utilized or exhausted through the standard business operations which can lead to their conversion to a cash value over the next one year.