What is the difference between current assets and long-term assets? Follow

When you enter an asset purchase into your forecast, you can choose between two types: current assets and long-term assets, as shown below:

Long-term assets

These are sometimes called fixed assets. Long-term assets are intended to be used in your business for longer than one year. They could be things like computers, equipment, building improvements, vehicles, etc. Most long-term assets slowly lose value, or depreciate, over their useful life. LivePlan automatically calculates the depreciation of long-term assets for you.

Current assets

These are sometimes called short-term assets. Current assets are intended to be used up, sold, or converted to cash within one year. Good examples of current assets are accounts receivable (money your customers owe you), inventory, or annual professional licensing or service contracts. Most short-term assets will amortize, or spread their value out over their useful life. LivePlan automatically calculates the amortization of current assets for you.

More on assets:

• Entering assets
• Depreciation and Amortization: Determining the useful life of an asset