Examples of Non-Current Assets: Land and building, Fixtures and Fittings, Equipment, Motor Vehicles. You may think of current assets as short-term assets, which are necessary for a company's immediate needs; whereas noncurrent assets are long-term, as they have a useful life of more than a year. Non-current assets, on the other hand, are resources that are expected to have future value or usefulness beyond the current accounting period. Typical examples of current items are inventories, trade receivables, prepayments, cash, bank accounts, etc. Current assets are sometimes listed as current accounts or liquid assets. Cash – Cash is the most liquid asset a company can own. patents), and property, plant and equipment. Examples of non-current assets Major categories of non-current assets A type of intangible asset Skills Practiced. Advances of long-term nature made to employees: $10 million less $2 million due in 12 months. . Property, plant, and equipment (PP&E) are long-term assets vital to business operations and not easily converted into cash. The property forms the non-current asset except if it is a real estate company, which is dedicated to buying and selling real estate. Inventory 4. Non-current assets can be considered anything not classified as current. 3. $15 million prepayment is a current asset. Deferred Tax liabilities are needed to be created in order to balance … 2. Examples of non-current assets include fixed assets, leasehold improvements, andintangible assets, (Investorwords, 2008). Cash and cash equivalents 2. Current assets are assets that are expected to be converted to cash within a year. Examples of current assets can be – Short term investments done by the company in another, Marketable securities, Trades Receivables, Cash & Cash Equivalents, etc. Cash: Cash includes accounts such as the company’s operating checking account, which the business uses to receive customer payments and pay business expenses, or an imprest account, which keeps a fixed amount of cash in it (such as petty cash). You can learn more about the standards we follow in producing accurate, unbiased content in our. List of Assets Accounts – Examples. $2 million short-term portion of long-term advances made to employees. $15 million prepayment is a current asset. Economic Value: Assets have economic value and can be exchanged or sold. Noncurrent assets are a company’s long-term investments where the full value will not be realized within the accounting year. Non-current liabilities are one of the items in the balance sheet that financial analysts and creditors use to determine the stability of the company’s cash flows and the level of leverage. On this date the property was … Examples of current assets include cash and cash equivalents, trade and other receivables, inventories, and financial assets (with short maturities). The quick ratio: Current assets, minus inventory, divided by current liabilities; The cash ratio: Cash and cash equivalents divided by current liabilities . Non Current Assets Definition: A non-current asset is an asset that the company acquires or invests, but the value of that investment does not recur within an accounting year. Noncurrent assets are ones the company reckons it will hold for at least one year. Typical examples of current items are inventories, trade receivables, prepayments, cash, bank accounts, etc. Assets which physically exist i.e. Contrary to noncurrent assets, noncurrent liabilities are a company's long-term debt obligations, which are not expected to be liquidated within 12 months. Prepaid ex… Non-current assets are the least liquid of all assets and usually take a number of years to be fully realized.