Capital Goods
Capital goods refer to the assets that are used in the production process of a business. These assets are not intended for sale but are essential for the smooth functioning of the business operations. Capital goods are long-term assets that are used over an extended period of time, typically more than one year.

Examples of Capital Goods:
1. Machinery and equipment: This includes tools, machinery, and equipment used in the production process. For example, a manufacturing company may use machines such as lathes, drills, and presses.
2. Buildings and infrastructure: This includes the physical structures used for business operations, such as factories, warehouses, and offices.
3. Vehicles: This includes vehicles used for transportation or delivery purposes, such as trucks, vans, and forklifts.
4. Furniture and fixtures: This includes office furniture, shelves, racks, and other fixtures used for business purposes.

Characteristics of Capital Goods:
- Long-term use: Capital goods are used over an extended period of time, usually more than one year.
- Non-saleable: Capital goods are not intended for sale but are used in the production process.
- Depreciation: Capital goods are subject to depreciation, which represents the decrease in their value over time due to wear and tear or obsolescence.
- Essential for operations: Capital goods are necessary for the smooth functioning of the business operations.

Non-current Assets
Non-current assets, also known as long-term assets, are the resources that are not intended for sale in the ordinary course of business. These assets have a useful life of more than one year and are not easily convertible into cash.

Examples of Non-current Assets:
1. Property, plant, and equipment: This includes land, buildings, machinery, vehicles, and other long-term assets used in the business.
2. Intangible assets: This includes patents, copyrights, trademarks, and other non-physical assets with long-term value.
3. Investments: This includes long-term investments made by the business, such as shares in other companies or bonds.
4. Goodwill: Goodwill represents the value of a business's reputation, customer base, and other intangible factors that contribute to its value.

Characteristics of Non-current Assets:
- Long-term use: Non-current assets have a useful life of more than one year.
- Not easily convertible: These assets are not easily converted into cash.
- Depreciation: Non-current assets are subject to depreciation or amortization, which represents the decrease in their value over time.
- Long-term value: Non-current assets contribute to the long-term value and growth of the business.

In summary, capital goods are a specific category of non-current assets that are used in the production process of a business. While non-current assets encompass a broader range of resources, capital goods specifically refer to the assets used in the production process and are essential for the business operations. Both capital goods and non-current assets have long-term use and contribute to the value and growth of the business.