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Username: Maria Rating:  Asked to: Anton Luyten Date Created: 23 Aug 2017 |
| Category | 40 |
| Tag | Financial |
| Question | What are 'Current Assets'? |
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Hi Maria, Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. Current assets are important to businesses because they can be used to fund day-to-day operations and pay ongoing expenses. Depending on the nature of the business, current assets can range from barrels of crude oil, to baked goods, to foreign currency. On a balance sheet, current assets will normally be displayed in order of liquidity, or the ease with which they can be turned into cash. In the United Kingdom, current assets are also known as current accounts. |
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