What Is Non Productive Assets?

What is non productive assets?

Non productive assets, also known as non renewable assets, refer to assets acquired through the production process, mainly referring to various kinds of assets.

Classification of non productive assets

Non productive assets can be broadly classified into two categories:

One is resource assets, that is, tangible non productive assets.

The other is intangible non productive assets, such as patents, leases and other pferable contracts, goodwill purchased and so on.

The difference between productive assets and non productive assets

The distinction between productive assets and non productive assets is not the specific form and use of assets. The distinction between productive assets and non productive assets is:

(1) whether it is a direct result of human labor;

Production assets are the direct results of human labor, while non productive assets are not.

(2) whether it can be duplicated.

After assets are consumed, production assets can be duplicated, while non productive assets can not.

From a country's perspective, unless there is a big discovery, non productive assets can only be reduced and not renewable, which determines that it will continue to decrease in aggregate and share in assets will gradually decline.