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.

How are current assets presented on a balance sheet?

Current assets are expected to be consumed, sold, or converted into cash either in one year or in the operating cycle, whichever is longer. They are usually presented in order of liquidity on the balance sheet and include cash and cash equivalents, accounts receivables, inventory, prepaid, and other short-term 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.