Fixed Assets: Those asses whish are owned and used by the firm for generating cash Assets are of two types i.e. tangible fixed assets and intangible fixed assets. Tangible Fixed assets have their physical existence and intangible assets do not have their Physical existence. Furniture, land and building, plant and machinery, vehicles etc are The example of tangible fixed assets. On the other hand, goodwill, patent, trademark,Copyright etc. are the examples of intangible fixed assets.
Current Assets: Those assets which are easily convertible into cash with in a year are Called current assets. Such assets are easily converted into cash during an accounting Period of a firm. These assets are also called floating assets or circulating assets. Cash In hand, cash at bank, bills receivable, sundry debtors, accrued income etc. are the Examples of current assets.