Current Assets

Definition: Current Assets are assets expected to be converted to cash, sold, or consumed within one year or one operating cycle, whichever is longer. They are…

Current Assets are assets expected to be converted to cash, sold, or consumed within one year or one operating cycle, whichever is longer. They are listed on the balance sheet in order of liquidity and typically include: Cash and Cash Equivalents, Short-Term Investments (marketable securities), Accounts Receivable (net of allowance), Inventory, Prepaid Expenses, and other current assets. Current Assets is the numerator of the Current Ratio and (after subtracting inventory) the Quick Ratio.