Current vs non current assets

Non current assets are the assets held by an enterprise for more than on accounting period for use in the production or supply of goods or services, for tental to others, or for administrative purposes. It has investment properties. The current assets are trading. The liquidity of Non current assets is smaller than the current assets.

Non current assets and be sub-divided into tangible assets (plant, buildings, motor vehicles, etc.) and intangible assets (goodwill, patents, tradements, etc.) The current assets include: inventories, trade receivables, cash and cash equivalents and other current assets.

The useful life of non current assets is generally above two years, but the useful life of current assets is generally under one year. But sometimes, the current assets is within two years, the useful life of some non current assets is within two years. The price of non current is more bigger than the current assets generally.

Related posts:

1. Non-current assets and depreciation
2. Goodwill
3. Amortisation of goodwill on consolidation
4. Purchased goodwill
5. Current and liquid ratios