Noncurrent Asset

asset not expected to be converted into cash, sold, or exchanged within the normal operating cycle of the firm, usually one year. Examples of noncurrent assets include fixed assets, such as real estate, machinery, and other equipment; leasehold improvements; intangible assets, such as goodwill, patents, and trademarks; notes receivable after one year; other investments; miscellaneous assets not meeting the definition of a current asset.
Prepaid expenses (also called deferred charges or deferred ex penses), which include such items as rent paid in advance, prepaid insurance premiums, and subscriptions, are usually considered current assets by accountants. Credit analysts, however, prefer to classify these expenses as noncurrent assets, since prepayments do not represent asset strength and protection in the way that other current assets do, with their convertibility into cash during the normal operating cycle and their liquidation value should operations be terminated.

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