Q:What are noncurrent assets?
A:Noncurrent assets are assets that are not projected to be converted into cash within the accounting year. They are typically assets that cannot quickly be liquidated. A common definition of noncurrent assets is any assets that is not a current asset.
The three common types of noncurrent assets are tangible fixed assets, long-term investments, and intangible assets. Let’s take a look at these in more detail.
Tangible Fixed Assets: These are assets commonly used for the operation of a business. Fixed assets include things such as property, machinery, land, vehicles, furniture, and computers. Most companies do not sell these assets within a year and they are not easily converted to cash.
Long-term Investments: Long-term investments often include stocks, bonds, and notes receivable expected to be held over a year.
Intangible Assets: These assets include items such as goodwill, patents, trademarks, and, copyrights.