Current Assets

Definition

Assets expected to be converted to cash, sold, or used up within one year or the operating cycle, whichever is longer. Examples: cash, accounts receivable, inventory, prepaid insurance.

Related Terms

Balance Sheet

A snapshot of a company's financial position at a specific point in time. It lists assets (what you own), liabilities (what you owe), and equity (what's left over for owners). Always balances because: Assets = Liabilities + Equity.

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