Current Assets
What are Current Assets?
Current assets are those assets that are held as cash or can be converted to cash within the coming 12-month period.
![ass1](https://seeaccountingnow.online/wp-content/uploads/2020/05/ass1.jpg)
How it Works
A business will have assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA2-2.jpg)
They are divided into current assets and non-current assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA3-2.jpg)
Current assets are those that are held as cash or will be converted to cash in the coming 12-month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA4-2.jpg)
The checking account is a current asset.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA5-2.jpg)
Money can be withdrawn from the checking account, immediately.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA6-2.jpg)
Accounts receivable is also a current asset.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA7-2.jpg)
Most customers will pay what they owe within a 12-month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA8-2.jpg)
Inventory, too, is a current asset.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA9-2.jpg)
Typically, inventory will be sold to customers within a 12 month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/CA10-2.jpg)
© R.J. Hickman 2020