Anonymous
Feb 13
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Feb 13
Current assets are assets that are expected to be converted into cash or used up within one year or one operating cycle, whichever is longer. They are listed on a company's balance sheet and are important for assessing a company's liquidity and short-term financial health. Examples of current assets include:
1. Cash and Cash Equivalents: This includes physical cash, bank deposits, and highly liquid investments that can be easily converted into cash, such as money market funds.
2. Marketable Securities: These are short-term investments that can be easily bought or sold, such as stocks, bonds, or treasury bills.
3. Accounts Receivable: This represents the amount of money owed to a company by its customers for goods or services provided on credit. It is a claim that the company expects to convert into cash within a short period.
4. Inventory: This includes raw materials, work-in-progress, and finished goods that a company holds for sale or use in its production process.
5. Prepaid Expenses: These are expenses paid in advance, such as insurance premiums or rent, which will be used or consumed within the next year.
6. Short-term Investments: These are investments that are expected to be converted into cash within a year, such as certificates of deposit or government bonds.
7. Supplies: These are materials or goods that a company uses in its day-to-day operations, such as office supplies or maintenance supplies.
It is important to note that the specific current assets a company has may vary depending on its industry, business model, and accounting practices.
1. Cash and Cash Equivalents: This includes physical cash, bank deposits, and highly liquid investments that can be easily converted into cash, such as money market funds.
2. Marketable Securities: These are short-term investments that can be easily bought or sold, such as stocks, bonds, or treasury bills.
3. Accounts Receivable: This represents the amount of money owed to a company by its customers for goods or services provided on credit. It is a claim that the company expects to convert into cash within a short period.
4. Inventory: This includes raw materials, work-in-progress, and finished goods that a company holds for sale or use in its production process.
5. Prepaid Expenses: These are expenses paid in advance, such as insurance premiums or rent, which will be used or consumed within the next year.
6. Short-term Investments: These are investments that are expected to be converted into cash within a year, such as certificates of deposit or government bonds.
7. Supplies: These are materials or goods that a company uses in its day-to-day operations, such as office supplies or maintenance supplies.
It is important to note that the specific current assets a company has may vary depending on its industry, business model, and accounting practices.
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