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Finance Dictionary and Glossary of Investment Terms
Current assets
Definition 1.
Value of cash, accounts receivable,inventories, marketable securities and other assets that could be converted to cash in less than 1 year.
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Definition 2.
Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year.
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Definition 3.
A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year. A company's creditors will often be interested in how much that company has in current assets, since these assets can be easily liquidated in case the company goes bankrupt. In addition, current assets are important to most companies as a source of funds for day-to-day operations.
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