What are Noncurrent Assets?

non-current assets definition

Last Updated on 12/20/2017 by GS Staff


What are noncurrent assets?


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.