What are considered non-cash current assets?

Non-cash current assets refer to assets that do not have physical cash but are expected to be converted into cash within a year or during the company's operating cycle. In this context, accounts receivable and inventory are commonly classified as non-cash current assets.

Accounts receivable represents money owed to the company from customers for goods or services delivered but not yet paid for, which indicates future cash inflow. Inventory, on the other hand, refers to goods available for sale and can be converted into cash when sold, making it another type of non-cash asset that aids in generating revenue.

In contrast, cash on hand is a liquid asset and therefore not classified as non-cash. Short-term debt refers to liabilities rather than assets, and long-term investments fall outside the definition of current assets altogether, as they are not expected to be liquidated within the standard one-year or operating cycle timeframe. Thus, accounts receivable and inventory are the appropriate examples of non-cash current assets.