Widely read:
हिंदी में भी पढ़ें 
The assets section of the balance sheet is divided between current and non-current assets. Broadly, current assets are those which can be quickly converted into cash. Such assets include items like fixed deposits, liquid funds, trade receivables and inventory. On the other hand, non-current assets comprise all other assets which are not part of current assets.
A company should have enough liquid assets to cover its normal operating expenses. Otherwise, it could easily fall into a liquidity trap. Non-liquid assets won't be very useful in case the company has to use them to pay its current expenses.
However, it's possible that some non-current assets are quite liquid. For instance, one of the factors underlying the classification of an asset into current or non-current is whether the asset can be realised within 12 months. This results in long-term liquid assets, such as G-sec instruments of longer tenors, getting classified as non-current assets, even though they can be liquidated at a moment's notice. Another problem is that non-current assets are generally valued at book value rather than market value and therefore, that could be a significant difference between the two.
Case in point: BSE
Out of BSE's total assets of Rs 5,623 crore (as of September 2021), Rs 4,337 crore or about 77 per cent is classified as current assets. But even amongst the non-current assets, Rs 448 crore is shown as an investment in associates, including its 20 per cent stake in CDSL, another listed company. This figure is grossly lower than CDSL's market value (about Rs 3,079 crore as of March 25, 2022). And of course, these shares are highly liquid as well.
Also in the series:
Look at the EPS, not just profits
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