How are current assets different from fixed (noncurrent) assets?

Companies will categorize their assets based on how long they will be used. Fixed assets, also known as noncurrent assets, are assets that are designed to be held for a longer period of time (at least one year) and are difficult to liquidate. As a result, unlike current assets, fixed assets are subject to depreciation, which distributes a company’s cost of non-current assets over their useful lifetimes to expense them.