Similarities & Differences Between Plant Assets And Current Assets With Relationship
Plant Assets VS Current Assets Plant Assets are Fixed Assets or Non Current Assets which are used in the business’ operations to produce revenue for the period while Current Assets are the resources which provide probable benefits within or less than one year. Some Current Assets such as Cash and Cash Equivalent and Accounts Receivable are converted into cash very quickly while plant assets are used in the business for more than year, so usually these are converted into cash when these are no longer useful for the business i.e., after fully depreciation charged on these assets, then these are sold out in the market for cash. Examples of plant assets include Land & Building, Machinery, Vehicle, Office Equipment, etc. Examples of current assets consist of Cash & Cash Equivalent, Accounts Receivable, Inventory, Prepaid Expenses, Investments, etc. Similarities Between Plant Assets And Current Assets (a) Both are assets for the business. (b) Both are used in the busin