Investments may or may not be current assets depending on how long they are held. A current asset is any asset that will provide an economic benefit for or within one year. If an investment has a maturity of a year or less, such as a US Treasury Bill, or is purchased with the intent to resell quickly, such as with trading securities, then it is a current asset. If the investment will be held for longer than a year, such as with equity shares, then it is a non-current asset.
Are Investments Current Assets? FAQs
An investment is the purchase of assets with the expectation that the value of those assets will increase over time, thereby generating a financial return.
Investments may or may not be current assets depending on how long they are held.
A current asset is any asset that will provide an economic benefit for or within one year.
If an investment has a maturity of a year or less, such as a US Treasury Bill, or is purchased with the intent to resell quickly, such as with trading securities, then it is a current asset.
If the investment will be held for longer than a year, such as with equity shares, then it is a non-current asset.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
