What is current assets?

[alenaghose]

Can someone explain the term current asset?

 

[Lucky]

Current assets are short-term resources owned by a business that can be converted into cash within a year. They include cash, accounts receivable, inventory, and short-term investments. These assets are essential for meeting day-to-day expenses, covering short-term liabilities, and ensuring smooth business operations without needing long-term financing.

 

[Olivia]

Current assets are things a business owns that can be quickly turned into cash—usually within a year. Think cash, bank balance, inventory, unpaid customer bills (called receivables), and short-term investments. They're basically the stuff a company uses to keep things running day to day.

 

[peterkavinsky]

Current assets are resources a company owns that are expected to be converted into cash, sold, or used up within one year or a business’s operating cycle. Examples include cash, accounts receivable, and inventory.

 

[ankita]

cash and other assets that are expected to be converted to cash within a year.