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Current assets include cash and assets that are expected to be converted into cash, consumed or exhausted in the next year or current operating cycle. ExamplesExamples of current assets include cash, cash equivalents, foreign currency, short-term investments, accounts receivable, inventory and prepaid liabilities.
Balance SheetOn a balance sheet, current assets are typically listed separately from long-term assets. It is customary to list items in order of liquidity with items that are easiest to turn into cash coming first. Current assets are an important consideration in judging the financial health of an entity as a measure of liquidity or ability to pay for short term obligations.|
Type | | Definition | Cash and assets that are expected to be converted into cash, consumed or exhausted in the next year or current operating cycle. | Also Known As | Current accounts | Related Concepts | |
Asset
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An overview of the common types of assets.
A guide to asset management.
A definition of information asset with examples.
An overview of capital assets with examples.
A definition of asset with a few examples.
Long-lived assets that cannot be easily converted into cash.
Assets that have no physical presence.
A basic overview of money.
The definition of tangible with examples.
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