Types of Assets in Accounting
Assets are the resources owned by individuals or companies or governments that are expected to generate future cash flows over a long period of time. There is broadly three types of Assets distribution – 1) based on Convertiblility (Current and Non-current Assets), 2) Physical Existence (Tangible and Intangible Assets) and 3) Usage (Operating and Non-Operating Assets).
This type of accounting assets i.e. Current assets are the short term assets, which easily get converted into cash by means of sales or consumption in normal business operations within a one year period of time interval. List of current assets includes:
#2 – Noncurrent Assets
This type of accounting assets are the long term assets (or Fixed Assets) which are not meant to be sold or consumed and will benefit the company for a number of years in future i.e. these assets will serve the business for more than a period of one year. Basic noncurrent assets include:
- Tangible Fixed Assets (like Property, Plant and Machinery (PP&E))
- Other Tangible Assets (like long term investments)
- Intangible Assets (like patents, copyrights, and Goodwill)