Current Assets - What do you mean by current asset?

Q: What do you mean by current asset?

Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Answer

All of a company's assets that are anticipated to be liquidated or utilized in the course of routine business activities over the next twelve months constitute its current assets. Other liquid assets include accounts receivable, stock inventories, marketable securities, cash and cash equivalents, and pre-paid obligations.

Current Assets - What do you mean by current asset?

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