The assets of the company can be classified into the two heads, namely the current assets and noncurrent assets. Current assets refers to the assets that will provide benefits to the firm not more than one year or the assets that are expected to be converted into the cash into one year (Current Assets, 2013). Current assets will include the cash and other assets that are likely to be converted into the cash or more likely to be used up within one year or one operating cycle, whichever is greater (What are differences between current and non-current assets or liabilities?, 2010). Common examples of the current asset include cash & cash equivalents, inventories, account receivables, marketable securities, prepaid expenses etc. Current assets reveal the information about the operation of the firm. The assets which provide future benefits to the company more than one year are termed as the noncurrent assets (Noncurrent Assets, 2013). Noncurrent assets are also termed as the long term assets. The benefits of the noncurrent assets to the firm will expand more than one year. Example of the noncurrent assets includes both the tangible and intangible assets. Tangible assets are those long term assets which have physical substances. Examples of the noncurrent tangible assets include plant, equipment, furniture & fixtures, land, buildings and natural resources. On the other hand, noncurrent intangible assets are those noncurrent assets which do not any physical substance. Examples of noncurrent intangible assets include patents, trademarks and copyrights. There some difference between the current assets and the noncurrent assets. These examples are as follows.

➢ Current assets are expected to provide benefit to the firm one or less than one year whereas the noncurrent assets are expected to provide benefit to the firm more than one year.

➢ Where the current assets