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.
Category: Accounting & Auditing
Previous: ← Classified balance sheet
Next: Long-term investments →
More from this Section
- Capital expenditures
Capital expenditures refer to the expenditures that increase the operating efficiency, ... - Capital reserve
The term ‘Capital reserve’ has not been defined by the Companies Act except negatively ... - Classified of inventory
In a manufacturing company, some inventory may not yet be ready for sale. As a result, ... - Premium
Premium is the difference between the selling price and the fact value of a bond/stock, ... - Capital Market Line
The Capital Market Line describes strategies that blend return and risk ideally. It is ...