wencc
Aug 16, 2010, 04:58 AM
What mean of non-current asset?
How come cash and receivabls can be non-currents assets?
morgaine300
Aug 16, 2010, 07:57 PM
Current assets are ones that will be used or realized within one year.  So any asset not fitting that description is a non-current assets.
 
A receivable can easily be non-current if it's going to be longer term before you collect it.  Your typical "accounts receivable" (or trade receivables) would be collected in anywhere from 10-60 days or so, but fairly current.  But you could have a note receivable from someone that is not due for 5 years.  Think about a bank: they have a lot of non-current receivables.
 
Cash can also be non-current if it's not available for use.  A compensating balance is a good example.  That's where you must maintain some balance for some specific reason, like you have a loan with a bank, and you must maintain some minimal amount in an account with that bank during the loan period.  (Like 10% of the outstanding loan amount or whatever.)  If a portion of that compensating balance has to remain over a year, then it becomes non-current.  Even if the cash could technically be used, the intent is not to use it.