Current assets include cash and assets that are expected to be converted into cash, consumed or exhausted in the next year or current operating cycle.
Examples
Examples of current assets include cash, cash equivalents, foreign currency, short-term investments, accounts receivable, inventory and prepaid liabilities.
Balance Sheet
On a balance sheet, current assets are typically listed separately from long-term assets. It is customary to list items in order of liquidity with items that are easiest to turn into cash coming first. Current assets are an important consideration in judging the financial health of an entity as a measure of liquidity or ability to pay for short term obligations.
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