Fixed Asset vs Current Asset

Assets are everything that your business owns. Assets can be catetorized into fixed asset and current asset.

Fixed Asset
- purchased with the intention to use it in the business for long term
- not intended to resell it to make profit
- eg:
--> buildings
--> machinary
--> motor vehicles

Current Asset
- goods purchased with intention to resell to make profit
- cash on hand
- money owed by debtors