The key difference lies in liquidity, which refers to how easily an asset can be converted into cash.
Current assets: These are assets that can be converted into cash within one year (or the operating cycle, if longer). Examples include cash, inventory, and accounts receivable.
Non-current assets: These are assets that are not expected to be converted into cash within one year. They are held for long-term use and contribute to the company's ongoing operations or future value. Examples include land, buildings, equipment, and long-term investments.