WHAT IS AN ASSET?
Assets are things that are owned by the business which are used to produce economic value to the business in meeting its debts and other
commitments. These could be classed as:
· Non-Current assets
· Current assets
Non-Current assets are things that are owned by the business over a long period of time usually for longer than one year and these assets cannot be converted to cash so easily. Examples include:
· Motor vehicles
· Property
· Furniture
Current assets are things that are owned by the business over a short period of time usually for shorter than one year and these assets are more liquid than non-current assets and are cash or can be easily converted into cash. Examples include:
· Bank
· Debtors
· Stock
Your task:
Identify 3 differences between current and non-current assets