Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted into cash within one year.
 | | Current Assets | | The term current assets represents all the assets of a company that are expected to be conveniently sold, consumed, utilized or exhausted through the standard business operations which can lead to their conversion to a cash value over the next one year. Since current assets is a standard item appearing in the balance sheet, the time horizon represents one year from the date shown in the heading of the company's balance sheet. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities and other liquid assets. In a few jurisdictions, the term is also known as current accounts. | | Breaking it Down: | | Current assets are important to businesses because they can be used to fund day-to-day business operations and... | | Read More » | | Related to "Current Assets" | | | | 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 balance sheet reports a company's assets, liabilities and shareholders' equity at a specific point in time. | | Read More » | | | Cash Ratio | | The cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. | | Read More » | | | Liquidity Ratios | | Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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