?DISTINGUISH BETWEEN FIXED ASSET AND CURRENT ASSET
FIXED ASSET

Assets which have long life (more than one year) and which are bought for use for a long period of time. These are not bought for selling purposes. e.g. land, building, plant and machinery, furniture etc.

CURRENT ASSET

Assets which have short life (less than one year) and which can be converted into cash quickly. e.g. stock, debtors, cash in hand, cash in bank, prepaid expenses.