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.

What are current assets & why are they important?

Current assets include cash and cash equivalents, inventory, and accounts receivable other assets that can convert into cash in one year. Current assets are important to a company because they provide the funds necessary to pay for expenses and keep the business running. What Are Current Assets?

What are current assets & liabilities?

Current assets are items that a company expects to convert to cash in one year. Examples of current assets include cash, accounts receivable, inventory, and short-term investments. A company’s current liabilities are obligations that are due within one year.