key term - Current assets

Definition

Current assets are all the assets a company expects to convert into cash or use up within one year or within its operating cycle, whichever is longer. They include items such as cash, inventory, and accounts receivable.

Related terms

Cash: The most liquid form of asset available with a company, used to meet immediate expenses.

Inventory:

Goods and materials that a business holds for the ultimate goal of resale or processing.

Accounts Receivable:

Money owed to a company by its customers for goods or services already delivered but not yet paid for