Current Asset

A current asset is something a company owns that it plans to turn into cash or use up within a year. This includes things like cash, inventory (the products they sell), money owed to them by customers, and short-term investments. Current assets help businesses meet their short-term financial obligations

Related Terms

• Common Stock
• Compensatory Balance
• Cost of Capital
• Cost Basis
• Credit
• Cost of Goods Sold
• Closing Balance
• Contract
• Capital or Equity
• Cash Basis Accounting
• Chart of Accounts (COA)
• Credit Note
• Cash Flow
• Contra Entries
• Consignment
• Current Ratio