The fixed assets represent the long term investments which a company makes. They include:
A company doesn’t just spend money on long term investments, a lot of money is taken up by the companies activities themselves: buying and selling goods and services.
The following are included in the current assets:
Inventory: A company that sells products has an inventory. This inventory eats a lot of cash, and often has a cost of storage and depreciation.
Receivables: When a company sells products and services, not all clients pay immediately. We call these unpaid invoices receivables.
Cash: cash at bank and on hand