Current and Non-Current
There are two types of assets and liabilities, “current” and
“non-current.” Current assets are those
that are expected to be converted to cash in one year or less, and current
liabilities are those that will come due in one year or less. So, cash, marketable securities, accounts
receivable, and inventory are all considered current assets, while accounts
payable and the principal amounts of loans due within a year are considered
current liabilities.
Non-current assets and liabilities are due or converted to cash in over a year. Fixed assets and intangible assets are considered non-current, and loan amounts that are due in more than a year are also considered non-current.
Non-current assets and liabilities are due or converted to cash in over a year. Fixed assets and intangible assets are considered non-current, and loan amounts that are due in more than a year are also considered non-current.
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