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My question is: US-specific
QUESTION: What are noncurrent assets?
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david ingram replies:
"Current" Assets are assets that a company has that can be easily converted into cash within one operating cycle. The operating cycle is hpw long it takes to sell a product and collect for the sale. So the operating cycle can last anywhere from 60 to 180 days.
If there is a shortfall in current assets, then the company has to find some other form of short-term funding, which normally results in interest payments or dilution of shareholder value through the issuance of more shares of stock.
There are five main kinds of current assets -- Cash & Equivalents, Short Term Investments, Accounts Receivable, Inventories and Prepaid Expenses.
"Non-Current" Assets are just about anything else. They are generally considered to include:
* long term investments of over one year.
* real estate (land)
* buildings
* patents
* production Machinery
* discounted lease
Hope this helps
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
Offshore Out of Country US and Canadian Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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Be ALERT, the world needs more "lerts"
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