current assets
Definition
A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year. A company's creditors will often be interested in how much that company has in current assets, since these assets can be easily liquidated in case the company goes bankrupt. In addition, current assets are important to most companies as a source of funds for day-to-day operations.
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Related Terms
current liabilities, current ratio, quick assets
'current assets
' appears in the definitions of these terms on BusinessDictionary.comcurrent assets turnover, average current assets, current ratio, inventory management, marketable security, and 
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