Current assets are either cash or assets that could be converted into cash within one year. Includes the following: Cash and cash equivalents: These include money in checking or savings accounts, and any investment securities that are liquid and have short-term maturities (usually 90 days or less). Marketable securities: These are short-term, low-risk investments that can be easily sold and converted to cash at a reasonable price. Accounts receivable: These are the amounts owed to the company by its customers for goods or services that have been delivered or used but not yet paid for. Inventories: These include all goods available for sale, i.e., raw materials, work-in-progress, and finished goods. Prepaid expenses: These are future expenses that a company has paid in advance, i.e., rent, insurance paid in advance.
Learn Current Assets with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Current Assets through hands-on practice and real-world examples.