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Money can be withdrawn from the checking account, immediately.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