What term refers to assets not expected to be liquidated within a year?

The term that refers to assets not expected to be liquidated within a year is "Long Term Assets." This classification includes assets that are intended to be held for more than one year, such as property, machinery, and investments. Long term assets are crucial for providing stability and supporting a company’s operations and growth over time. They are recorded on the balance sheet and help in assessing the long-term financial health of an organization.

Current assets, on the other hand, are defined as assets that are expected to be converted into cash or used up within one year, such as cash, inventory, or accounts receivable. Fixed assets are often a subset of long term assets, specifically comprising tangible and intangible assets that a company uses in its operations. Current liabilities, meanwhile, pertain to obligations that the company needs to settle within a year, which highlights the distinction between assets and liabilities in this context. Understanding these classifications is fundamental in financial planning and analysis, as they impact both liquidity and long-term strategy.