Financial Education

Current assets are resources the company will either use up or expects to convert into cash within the year (or operating cycle if longer.) Typical components of current assets, other than cash, are marketable security investments (often treasury bills or stock in other companies), accounts receivable (money that customers owe the company) and inventory (assets the company will sell to customers). Prepaid expenses such as multi-year insurance premia or service contracts paid in advance may also appear in current assets.

For more information, see all articles on: Accounting, Financial Statement Analysis, Fundamental Analysis

See also:

The Current Ratio

Comparability Issues for Non-current Assets

Assets

The Quick Ratio

Balance Sheet: The Account Format