Current assets are cash and other assets that in the normal course of business are expected to be consumed or converted into cash within one year of the balance sheet date or the normal operating cycle of the business, whichever is longer.  Current assets in the balance sheet comprise cash and cash equivalents, receivables, inventories and accrued income and prepaid expenses.

Current Assets in the Balance Sheet – US and UK Formats
Common US Format Common UK Format
 Current Assets (1)  Current Assets (1)
 Cash and Cash Equivalents (2)  Stocks (5)
 Short-Term Investments (3)  Debtors (4)
 Receivables, Net (4)  Investments (3)
 Inventories (5)  Cash at Bank and in Hand (2)
 Accrued Income (6)  Prepayments (7) and Accrued Income (6)
 Prepaid Expense (7)

An asset that a company acquires for continued use in operations or possession and not for resale and, if a limited-life asset, is expected to be consumed or converted into cash in the normal course of an entity’s activities only after the following accounting period is a noncurrent asset.  The noncurrent assets in a balance sheet include property, plant and equipment, financial leases, investments, intangible assets and other assets.

Noncurrent Assets in the Balance Sheet – Common US and UK Formats
Common US Format Common UK Format
 Noncurrent Assets (1)  Fixed Assets (1)
 Property, Plant and Equipment (2)  Tangible Assets (2)
 Investments (3)  Investments (3)
 Intangible Assets (4)  Intangible Assets (4)
 Other Assets (5)  Other Fixed Assets (5)

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