Is Equipment a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, equipment is not considered a current asset. Equipment is a part of Property, Plant, and Equipment which is a noncurrent asset. A current asset is any asset that will provide economic benefit within one year or less. Equipment is part of the fixed assets category on a company’s balance sheet, meaning that it is expected to provide economic benefit for longer than one year. Therefore, it is considered a noncurrent asset.

Is Equipment a Current Asset FAQs

Is equipment a current asset?

No, equipment is not considered a current asset.

What is equipment in accounting?

Equipment is a part of Property, Plant, and Equipment which is a noncurrent asset.

What is a current asset?

A current asset is any asset that will provide economic benefit within one year or less.

Why is equipment a noncurrent asset?

Equipment is part of the fixed assets category on a company’s balance sheet, meaning that it is expected to provide economic benefit for longer than one year.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.