The company lists all the assets on its balance sheet. When a person thinks of an asset, he usually thinks of tangible assets; not all assets are tangible. For a relevant example, trademarks and patents are not examples of intangible assets. Assets always recorded on the balance sheet in the order of their liquidity.

Assets can be classified into two:

1. Current Assets

The current asset is one that has a year or less of service life. Prepaid Expenses and Supplies ( already paid for or a liability incurred) are included because they will normally be used or consumed within the operating cycle. Current assets anticipated to be spent or converted to cash during the year listed at the top. Cash, short-term investments, and inventories are examples of liquid assets.

2. Non- Current Assets

The useful life of non-current assets is more than one year. These are the assets that do not meet the criteria to be classified as current. Non- current assets have divided into three types such as intangible assets, long-term assets such as property, plant, and equipment, and it also includes long-term investment.