What are 'Current Assets'?

Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within one year.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Current Assets Current assets is a balance sheet account that represents 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. Breaking it Down: Current assets are important to businesses because they can be used to fund day-to-day operations and... Read More Related to "Current Assets" What is the difference between current assets and non-current assets? Learn how to differentiate between current assets and non-current assets and their uses, which are listed on a company's balance sheet. Read More How do you calculate net current assets in Excel? Learn how to calculate net current assets, or working capital, in Microsoft Excel and how to evaluate the financial health of a company. Read More What is the difference between liquidity and liquid assets? Liquid assets can easily be converted into cash. Liquidity is the ability of a business to pay its debts using its liquid assets. Read More Related Definitions Current Ratio The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. Read More Balance Sheet A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. Read More Cash Ratio The ratio of a company's total cash and cash equivalents to its current liabilities. The cash ratio is most commonly used as a measure of company liquidity. Read More Liquidity Ratios A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: