What are noncurrent assets also referred to as?

Noncurrent assets are primarily referred to as long-term or fixed assets because they are resources that a company expects to hold and use for an extended period, typically beyond one year. These assets are not easily converted into cash and are crucial for supporting the business's operations over the long term. Noncurrent assets include items such as property, plant, equipment, and intangible assets like patents or trademarks.

In contrast, liquid assets are those that can be quickly converted into cash, such as cash itself or investments that can be easily sold. Intangible assets, while they can be considered noncurrent, do not encompass all long-term assets, as noncurrent assets also include tangible items. Current assets are defined as those expected to be converted into cash or consumed within one year, which differentiates them from noncurrent assets that serve the company for longer durations. Therefore, the designation of noncurrent assets as long-term or fixed assets accurately reflects their purpose and duration within a business’s asset management framework.