AyushiCurious In: 1. Financial Accounting > Miscellaneous Is building a current asset? Is building a current asset? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent ShreyaSharma none 2022-08-16T21:07:32+00:00Added an answer on August 16, 2022 at 9:07 pm This answer was edited. No, the building is not a current asset. Explanation Current assets are those in a business that is reasonably expected to be sold, consumed, cashed, or exhausted within one year of accounting through normal day-to-day business operations. Examples: Cash and cash equivalent, stock, liquid assets, etc. The building is expected to have a valuable life for more than a year and is bought for a longer term by a company. The building is a fixed asset/non-current asset, those assets which are bought by the company for a long term and aren’t supposed to be consumed within just one accounting year. In order to understand it more clearly, let’s see the two types of assets in the classification of the assets on the basis of convertibility: In the classification of the assets on the basis of their convertibility, they are classified either as current assets or fixed assets. Also referred to as current assets/ non-current assets or short-term/ long-term assets. Current Assets – As explained above, those assets in a business that is reasonably expected to be sold, consumed, cashed, or exhausted within one year of accounting. Fixed Assets – Those assets which are not likely to be converted into cash quickly and are bought by the business for a long term. Building in the balance sheet Let us take a look at the balance sheet’s asset side and see where building and current assets are shown Balance Sheet (for the year ending…) As we can see, the building is shown on the long-term assets side and not in the current assets. Therefore, the building is not a current asset. 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What are some examples of deferred revenue expenses? Are brands intangible assets? What comes in debit side of Realisation account? What is recorded in the Realisation account? What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance?