Current and Noncurrent Assets
Ernest Respi
ACC/400
June 25, 2012
Lane Groff

Current and Noncurrent Assets
Accounting is a way a business records transactions, keeps financial records, performs audits, and reports information. Accounting shows profits and losses for a business at any given time, it shows assets and liabilities. This is an important part of every business; a business must know exactly where all its assets and liabilities are in order to grow. Accounting provides the methods to track assets and define if these assets or gains or losses, current and noncurrent assets is one way to category gains and losses.
Current assets is “an asset such as receivables, inventory, work in process, or cash, that is constantly flowing in and out of an organization in the normal course of its business, as cash is converted into goods and then back into cash. In accounting, any asset expected to last or be in use for less than one year is considered a current asset” (Business dictionary). Current assets is the day to day business of a company, this assets is what a company uses to support the day to day function of the company. There are five main types of current assets cash or its equivalents, investments, account receivables, inventory and pre paid expenses. Current assets are found in financial records such as a balances sheet, this give stakeholder a way to view and track the company’s growth.
Noncurrent assets is “an asset that is not expected to be turned into cash within one year during the normal course of business, noncurrent assets include buildings, land, equipment, and other assets held for relatively long periods” (Business dictionary). There are three major types of noncurrent assets property, plant and equipment, intangible assets and natural recourses. Noncurrent assets will not be able to convert to cash within a one year period; these assets