Explore BrainMass

Explore BrainMass

    Non-current asset vs a current asset

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What is your opinion of if there should be a dollar value assigned to an item that makes it non-current asset vs a current asset?

    What are your thoughts on where these type of items would fit.....?

    © BrainMass Inc. brainmass.com December 24, 2021, 8:20 pm ad1c9bdddf
    https://brainmass.com/business/current-assets/non-current-asset-current-asset-268352

    SOLUTION This solution is FREE courtesy of BrainMass!

    Thank you for posting today. It is my goal to provide ideas, definitions, research help, and instructions on how you, the student, should approach the assignment.

    First, I think it'll be helpful to look at what each is.

    A current assets is something that has a tangible cash value. This could be cash itself, accounts recievable, inventory, etc. Items in this category can be converted into goods and back into cash fairly easily. For accounting purposes, any asset that is in use for less than a year is a current asset.

    A non-current asset, not surprisingly, is just the opposite. It cannot be easily converted to cash. Examples are things like fixed assets, leasehold agreements, and intangible assets.

    Obviously, current assets have a cash value. The reason why non-current assets exist as a category is because their cash value is either non-existent, or very difficult to determine. So, in my opinion, we should not try to assign dollar amounts to non-current assets.

    !

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 8:20 pm ad1c9bdddf>
    https://brainmass.com/business/current-assets/non-current-asset-current-asset-268352

    ADVERTISEMENT