Current Assets

Description of Current Assets. Explanation.

Definition Current Assets. Description.

Current Assets are cash and other assets which are expected to be converted to cash, consumed, or sold within one year or during the normal operating cycle of the business, whichever is longer. Also called Liquid Assets.

They include items such as: cash, cash equivalents, short-term deposits, marketable securities, accounts receivable, work in progress, raw materials, finished goods, prepaid insurance, prepaid expenses, and office supplies. Current Assets are listed on the company's balance sheet.

Non-current assets are normally called Fixed Assets and include items such as: land, buildings, office equipment, and computers.

Compare with: Intangible Assets  |  Current Liabilities  |  Working Capital

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End of description Current Assets. An explanation.