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What is the difference between current and fixed assets?

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Question added by Ali Elhaila , مفتش حسابات , وزارة المالية(ولاية النيل الابيض)
Date Posted: 2014/03/15
Taher Ahmed
by Taher Ahmed , Finance Manager , STAT Law Firm

Current assets are flexible in nature, easy to make cash , and floting money to company

whereas , Fixed assets are Fixed in nature, not easy to encash and regularly depreciated.

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

Differences as liquidity current assets more liquidity than fixed assetsAlso Current Assets service for short run activites like operational activities but Fixed Assets services long run activities like investment and Finance activities So it help to make classification for companies type as industrial companies if fixed assets is the major items like building and machines  and has more fixed assets than trading companies has current assets more like inventory of goods

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