Anonymous
Mar 25
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Mar 25
Current assets in accounting refer to assets that are expected to be converted into cash or used up within one year or one operating cycle, whichever is longer. These assets are typically listed on a company's balance sheet and include:
1. Cash and cash equivalents: This includes cash on hand, as well as any highly liquid investments that can be quickly converted into cash.
2. Accounts receivable: Amounts owed to the company by customers for goods or services provided on credit.
3. Inventory: Goods held for sale in the ordinary course of business.
4. Prepaid expenses: Expenses that have been paid in advance, such as insurance premiums or rent.
5. Short-term investments: Investments that are expected to be sold or mature within one year.
6. Marketable securities: Securities that can be easily bought or sold in the financial markets.
7. Other current assets: Any other assets that are expected to be converted into cash or used up within one year, such as advances to suppliers or employees.
1. Cash and cash equivalents: This includes cash on hand, as well as any highly liquid investments that can be quickly converted into cash.
2. Accounts receivable: Amounts owed to the company by customers for goods or services provided on credit.
3. Inventory: Goods held for sale in the ordinary course of business.
4. Prepaid expenses: Expenses that have been paid in advance, such as insurance premiums or rent.
5. Short-term investments: Investments that are expected to be sold or mature within one year.
6. Marketable securities: Securities that can be easily bought or sold in the financial markets.
7. Other current assets: Any other assets that are expected to be converted into cash or used up within one year, such as advances to suppliers or employees.
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