Definition

Current assets

Current assets are that a company expects to convert to cash or use up within one year. For most businesses the cutoff for classification as current assets is one year from the balance sheet date. For example, accounts receivable are current assets because the company will collect them and covert them to cash within one year. A supply is a current asset because the company expects to use it up in operations within one year.


Current assets mean cash plus items that can or will be converted to cash and used within one year; the most liquid of a firm’s assets.

Share it:  Cite

More from this Section

  • The Sarbanes-Oxley Act (SOX)
    Sarbanes-Oxley Act is the regulations passed by Congrees in 2002 to try to reduce unethical ...
  • Cost behavior analysis
    Cost behavior analysis is the study of how specific costs respond to changes in the level ...
  • Treasury stock
    Treasury stock is a corporation’s own stock that has been issued and subsequently reacquired ...
  • Unsecured bonds
    Unsecured bonds, also called debenture bonds, are issued against the general credit of ...
  • Publicly held corporation
    Publicly held corporation is a corporation that may have thousands of stockholders and ...