Answer:
They are non-current assets
Explanation:
Items that have a useful life of more than one year and used in the business are non-current assets.
<u>Non-current assets</u>
Non-current assets are assets which represent a longer-term investment and cannot be converted into cash quickly. They are likely to be held by a company for more than a year. They appear in the assets section of balance sheet.
Non-current assets include the following:
- Land
- Building
- Property, plant and equipment
- Machinery
- Fixture and fittings
These are different from <u>current assets</u>.
<u>Current assets:</u>
Current assets represent all the assets of a company that are expected to be conveniently sold, consumed, utilized or exhausted through the standard business operations, which can lead to their conversion to a cash value over the next one year period. Since current assets is a standard item appearing in the balance sheet, the time horizon represents one year from the date shown in the heading of the company's balance sheet.
Examples of current assets include
- Cash,
- Cash equivalents,
- Accounts receivable,
- Stock inventory,
- Marketable securities,
- Pre-paid liabilities, and other liquid assets.
In a few jurisdictions, the term is also known as current accounts.
