Assets are classified as either current or fixed. A fixed assets is one that has a relatively long life. Fixed assets can be either tangible, such as a tuck or a computer, or intangible, such as a trademark or patent. A current asset has a life of less than one year. This means that the asset will convert to cash within 12 months. For example, inventory would normally be purchased and sold within a year and is thus classified as a current asset.
