No, equipment is not considered a current asset. Equipment is a part of Property, Plant, and Equipment which is a noncurrent asset. A current asset is any asset that will provide economic benefit within one year or less. Equipment is part of the fixed assets category on a company’s balance sheet, meaning that it is expected to provide economic benefit for longer than one year. Therefore, it is considered a noncurrent asset.
Is Equipment a Current Asset? FAQs
No, equipment is not considered a current asset.
Equipment is a part of Property, Plant, and Equipment which is a non-current asset.
A current asset is any asset that will provide economic benefit within one year or less.
Equipment is part of the fixed assets category on a company’s balance sheet, meaning that it is expected to provide economic benefit for longer than one year.
The value of current assets can be calculated by taking the total amount of cash, accounts receivable, inventory, and prepaid expenses on hand at the time of calculation.
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.
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