Long Term Assets
From Financial Literacy Wiki
Long Term Assets (also known as Non-Current Assets) are assets that cannot be converted to cash easily. As such it is usually not used to determine whether a company can meet its short-term liabilities.
It is pertinent to note that the cost of a fixed asset is its purchase price, inclusive of import duties and cost attributable to bringing and installing the asset in its needed location and the initial estimate of dismantling and removing the item if they are eventually no longer needed on the location.
Most assets that are classified under Long Term Assets can be depreciated over time.
Some examples of Long Term Assets are as below:
- Property, plant and equipment
- Investment property, such as real estate held for investment purposes
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