Non-current asset vs a current asset

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.

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