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→Financial Statements
On a company's [[financial statement]], assets are classified as "current" and "non-current".
On a company's [[financial statement]], assets are classified as "current" and "non-current".
Current assets are defined as those which can or will be converted to cash within one year. In addition to cash, current assets will generally include [[accounts receivable]], inventory, and if a company has a long-term receivable (such as selling an old facility to a new owner), the portion of the receivable which it expects to collect during the year.
Current assets are defined as those which can or will be converted to cash within one year. In addition to cash, current assets will generally include [[accounts receivable]], short-term assets such as [[certificates of deposit]], the unused portion of prepaid expenses, inventory, and if a company has a long-term receivable (such as selling an old facility to a new owner), the portion of the receivable which it expects to collect during the year.
Non-current assets are all others which are not current. Common examples are land and facilities, manufacturing equipment, and intangible assets. Also, the portion of a long-term receivable owed after one year is classified as non-current.
Non-current assets are all others which are not current. Common examples are land and facilities, manufacturing equipment, and intangible assets. Also, the portion of a long-term receivable owed after one year is classified as non-current.