What you will learn to do: Account for other current and noncurrent assets

Let’s do a quick review. Current assets we’ve covered so far include:

• Cash and cash equivalents
• Accounts Receivable
• Inventories

Noncurrent assets we’ve covered so far include:

• Property, plant and equipment
• Natural Resources
• Intangibles such as goodwill and patents

The remaining list of other common current and noncurrent assets will obviously be different from company to company. However, there are some common items, such as:

• Long-term investments in other companies (and related short-term investments)
• Notes receivable
• Operating lease right-of-use assets

In your career as an accountant, as you run into specific items such as other receivables, deferred taxes, and various prepaid expenses, you’ll find the theories you have learned as you have studied these other major categories of assets will help you understand the FASB pronouncements that you find in your research.