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.

How it Works

A business will have assets.

They are divided into current assets and non-current assets. 

Current assets are those that are held as cash or will be converted to cash in the coming 12-month period.

The checking account is a current asset.

Money can be withdrawn from the checking account, immediately.

Accounts receivable is also a current asset.

Most customers will pay what they owe within a 12-month period.

Inventory, too, is  a current asset.

​Typically, inventory will be sold to customers within a 12 month period.

© R.J. Hickman 2020