Current asset
From Wikipedia, the free encyclopedia
In accounting, a current asset is an asset on the balance sheet which is expected to be sold or otherwise used up in the near future, usually within one year, or one business cycle - whichever is longer. Typical current assets include cash, cash equivalents, accounts receivable, inventory, the portion of prepaid accounts which will be used within a year, and short-term investments.
On the balance sheet, assets will typically be classified into current assets and long-term assets.
The current ratio is calculated by dividing total current assets by total current liabilities. It is frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.
[edit] Notes
Current Assets = Cash +Bank + Debtors + Bills Receivable + Short Term Investment + Inventory + Prepaid Expenses
[edit] External links
- BankRate.com - Current ratio calculator
- College-Cram.com - Current Ratio tutorial
Current Assets -cash at bank -cash on hand -debtors -stock
anything that will be used up in 12 months
