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Current Assets

<p >In&#160;<a href="https://en.wikipedia.org/wiki/Accounting" title="Accounting" >accounting</a>, a&#160;<b>current asset</b>&#160;is any&#160;<a href="https://en.wikipedia.org/wiki/Asset" title="Asset" >asset</a>&#160;which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current&#160;<a href="https://en.wikipedia.org/wiki/Fiscal_year" title="Fiscal year" >fiscal year</a>&#160;or operating cycle (whichever period is longer). Typical current assets include&#160;<a href="https://en.wikipedia.org/wiki/Cash" title="Cash" >cash</a>,&#160;<a href="https://en.wikipedia.org/wiki/Cash_equivalents" class="mw-redirect" title="Cash equivalents" >cash equivalents</a>, short-term investments,&#160;<a href="https://en.wikipedia.org/wiki/Accounts_receivable" title="Accounts receivable" >accounts receivable</a>, stock&#160;<a href="https://en.wikipedia.org/wiki/Inventory" title="Inventory" >inventory</a>&#160;and the portion of prepaid liabilities which will be paid within a year.<sup id="cite_ref-1" class="reference" ><a href="https://en.wikipedia.org/wiki/Current_asset#cite_note-1" >[1]</a></sup>

On a&#160;<a href="https://en.wikipedia.org/wiki/Balance_sheet" title="Balance sheet" >balance sheet</a>, assets will typically be classified into current assets and&#160;<a href="https://en.wikipedia.org/wiki/Long-term_assets" class="mw-redirect" title="Long-term assets" >long-term assets</a>.<sup id="cite_ref-2" class="reference" ><a href="https://en.wikipedia.org/wiki/Current_asset#cite_note-2" >[2]</a></sup></p>

Attachments