Is Machinery a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, machinery is not a current asset for accounting purposes. A current asset is any asset that will provide an economic value for or within one year. Machinery is part of the property, plants, and equipment, or PP&E, account on the balance sheet. PP&E has a useful life of longer than one year, so PP&E, machinery included, is list as a non-current asset on a company’s balance sheet.

Is Machinery a Current Asset FAQs

Is machinery a current asset?

No, machinery is not a current asset for accounting purposes.

What is a current asset?

A current asset is any asset that will provide an economic value for or within one year.

What is machinery?

Machinery is part of the property, plants, and equipment, or PP&E, account on the balance sheet.

Is machinery a non-current asset?

PP&E has a useful life of longer than one year, so PP&E, machinery included, is list as a non-current asset on a company’s balance sheet.

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.