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What is the difference between Current and Non Current assets?

What are current assets? What is the difference between Current and Non Current assets and also current and non current liabilities? What are current assets, I dont understand, please help, any examples. Thanks.
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ThunderBolt
Hi,

Current assets are relatively liquid, that is they can be converted into or will exist as cash in the near future and are not held long term. Examples of current assets include, trade debtors, work in progress and finished goods, cash in hand etc.

Non current assets or fixed assets are those that will be held for use in continuing operations, they are held for long-term use. They are often illiquid and some examples may be plant, property, buildings etc.

A further distinguishment can be made between tangible and non-tangible assets. Those listed above are tangible, in that they have a physical existence, intangible assets may include patents, trade marks and brands and their recognition often has a large degree of subjectivity related to it.

May I suggest using wikipedia to search any terms you would like explanations of, I find it a most useful source for quick reference.


Regards,
ThunderBolt

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