Difference between fixed and current assets

Fixed Assets vs Current Assets: What’s the difference?

If you’re new to the balance sheet, understanding each of its components can seem like an overwhelming and complicated ordeal. So, today we’re going to tackle some of the most frequently misunderstood components of the balance sheet, fixed and current assets. First, we’ll break down fixed and current separately and explain their categories, then we’ll draw the differences between the two. 

What is an asset?

Today I’m going to be talking about assets and their place in the financial planning landscape. There are many classifications of asset, which we’ll look at in relation to their place on the balance sheet.