What is a current asset? What is a noncurrent asset? What is the difference between the two types of assets? In which financial statement would you find these assets? A current asset is a balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. A noncurrent asset is a balance sheet accounts that is not easily convertible to cash or not expected to become cash within the next year. Examples include fixed assets, leasehold improvements, and intangible assets. Current assets and non-current assets can be found on the balance sheet.
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This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.