What are Current assets?

Current assets (Definition)

Current assets refer to any asset on your businesses balance sheet that can be readily sold, consumed, or used in standard business operations within one year. Current assets are important for any business as they fund the day-to-day running operations and pay for any ongoing operating expenses. They appear in order of liquidity, meaning they appear in order of which can be used the quickest or easiest first. These current assets include cash, including foreign currency, cash equivalents, investments, prepaid expenses, accounts receivable, stock inventory and other liquid assets. When your business has more current assets as opposed to current liabilities this gives a good indication that the business is able to meet its short-term obligations.