How do current assets and fixed assets differ a... - JSS3 Business studies Forms of trial balance Question

Current assets are assets that are expected to be converted into cash or used up within one year, such as cash, inventory, and accounts receivable. Fixed assets, on the other hand, are long-term assets used in the production or operation of the business, such as property, plant, and equipment. Differentiating between them is important because it provides insights into the liquidity and long-term investment needs of the company.