I’m sure you noticed on the Demo FS, the assets and liabilities were broken out between current and non-current. Now we’ll discuss in detail what that means.

Let’s discuss the following assets and liabilities and determine whether they are current or non-current

• Cash in the company bank account
• Land owned by a company
• An amount receivable from a customer, due within 30 days
• Inventory held in the company’s warehouse
• A bank loan that is repaying over 5 years

Examples

1. Cash – current
2. Land – non-current
3. AR – current
4. Inventory – current
5. Bank loan – both – portion due within 12 months = current, remainder = non-current