Question

list and describe the two types of assets a compny owns.

Answer 1

list and describe the two types of assets a company owns.

1. Current Assets:
The Balance sheets items which can be reasonably converted into cash within one year.
Example: accounts receivable, Bank balance, short term investments, inventory etc.

2. Non-Current Assets:
The Balance sheet items which generally takes more than one year to convert into cash & brought with a view to hold for the long term.

Example: Land & buildings, plant and machinery, long term investments, patent rights etc.