No, office furniture is not a current asset. A current asset is any asset that will provide an economic value for or within one year. Office furniture is expected to have a useful life longer than one year, so it is recorded as a non-current asset.
Is Office Furniture a Current Asset? FAQs
Generally, office furniture is classified as a Non-Current Asset since it does not have an easily measurable current market value and its economic benefits are expected to be realized over more than one accounting period.
Typically, factors such as the cost of acquisition, length of useful life expectancy, and expected salvage value contribute to classifying office furniture as a non-current asset.
In rare cases where office furniture has an easily measurable current market value, it could be considered a current asset.
Office furniture may also be classified as a fixed asset, depending on the nature of the purchase and its cost. If the item was purchased for longer-term use and its cost is significant enough that it meets or exceeds the company’s capitalization threshold, then it may be considered a fixed asset.
Yes, office furniture is typically depreciated over the course of its useful life. This means that it will be recorded as an expense on a company’s balance sheet in equal amounts each year until it has been fully written off.
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.
