The
Definition Of

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.

Share it:

More from this Section

  • Dates for dividend declaration
    Three dates are important in connection with dividends: (1) the declaration date, (2) the record date, and (3) the payment date.
  • Operating activities
    Operating activities refer to cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income.
  • Production cost report
    A production cost report is the key document management uses to understand the activities in a department; it shows the production quantity and cost data related to that department.
  • Depreciation Methods
    Depreciation is generally computed using one of the following methods: Straight-line, Units-of-activity, Declining-balance...
  • Conversion costs
    Conversion costs consists of the sum of labor costs and overhead costs. In other words, both the dry and liquid ingredients (materials) are added at the beginning...
  • Manufacturing Overhead
    Manufacturing overhead consists of costs that are indirectly associated with the manufacture of the finished product. These costs may also be manufacturing costs...
  • Treasury stock
    Treasury stock is a corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired.