what is current and fixed assets
Current Asset. Definition: A current asset is an item on an entity's balance sheet that is either cash, a cash equivalent, or which can be converted into cash within one year. Examples of current assets are: 1  Cash, including foreign currency. 2  Investments, except for investments that cannot be easily liquidated. 3  Prepaid expenses.
A: Fixed assets are long-term, tangible assets such as land, equipment, buildings, furniture and vehicles. Fixed assets are parts of the company that help with production and are components that last over time in the company. They are physical assets that can be seen.