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Current and Non Current AssetsSusie LopezUniversity of PhoenixACC 400Lane GroffApril 22, 2013 Assets are the resources a business owns. They are mainly of two types, current and noncurrent assets.Current Assets are the part of the balance sheet which can be converted to cash or may be used to pay expenses of a company on day to day basis. Cash in hand, inventory, Expenses (prepaid), work in progress and the liquid assets which can be easily converted to cash are some examples of the current assets. In the terms on of accounting, the current assets may be termed as the assets which can be liquidated to cash or which are expected to be used within a period of 12 months is said to be current assets. In balance sheet, current assets are the major component and they are first to be listed at the assets column and sometimes it is also termed as circulating assets.In simple words, assets which are not classified in the current assets are called Noncurrent Assets. It is also referred as Fixed Assets. Fixed assets are those assets which cannot be easily converted to cash i.e. generally fixed assets last for more than a period of at least one year. Land, machinery and other equipments that are used in the business process are some examples of noncurrent assets. These assets cannot be readily converted to the form of cash. But in case of non-current assets, they are depreciated with the span of time. Examples of noncurrent assets are long-term investments, p

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