What is a current asset?

Current Assets is an account listed on a balance sheet that shows the value of the assets owned by a company that can be converted to cash through liquidation, use, or sales within one year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Is cash a current asset?

Yes, cash is a current asset, as are “cash equivalents” or things that can quickly be converted into cash, like short-term bonds and investments and foreign currency. A current asset, or liquid asset, is any resource a company could use, turn into cash, or sell within a year. Learn the different types of current assets here.

What are examples of current assets?

What are some examples of current assets? Some examples of current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory, supplies, and prepaid expenses. What’s the difference between current and non-current assets?