Both investors and creditors look at the current assets of a company to gauge the value and risk involved in doing business with the company. They typically use liquidity ratios to compare the assets with liabilities and other obligations of the company. Some common ratios are thecurrent ratio,c...
Noun1.current assets- assets in the form of cash (or easily convertible into cash) liquid assets,quick assets plural,plural form- the form of a word that is used to denote more than one assets- anything of material value or usefulness that is owned by a person or company ...
prepaid rent is a current asset. This is rent that was paid for but not used yet. When a tenant pays the landlord a month’s rent in advance, the landlord owes the tenant a month’s worth of rent. This is a resource is an asset and the tenant records it like a receivable in this...
A noncurrent asset is an asset that a company owns that is not intended to be liquidated or sold within a year. It will either act as a long-term investment or be recorded as an expense over time as the asset depreciates. Two examples of noncurrent assets are real estate and vehicles...
Current Assets: Definition, Examples, and Formula A current asset, or liquid asset, is any resource a company could use, turn into cash, or sell within a year. Learn the different types of current assets here.On this page What are current assets? 7 types of current assets Examples of cur...
Examples of Current Assets What is a current asset? Current assets are cash and short-term assets that can be quickly converted to cash within one year or operating cycle. They're also referred to as liquid assets. When an asset isliquid, it can be ...
Examples of Current Assets What is a current asset? Current assets are cash and short-term assets that can be quickly converted to cash within one year or operating cycle. They're also referred to as liquid assets. When an asset isliquid, it can be converted to cash in a short timeframe...
collected in installments, the payments due within the next twelve months are shown as acurrentasset, and the remainder is shown as a long-term asset. Working capital current assetslesscurrentliabilities. Money that revolves in the business as part of the process of buying, making and selling ...
current account (redirected fromcurrent accounts) Thesaurus Legal Financial Encyclopedia current account n. The component of a nation's balance of payments that includes the price of imports and exports, investment income, and unilateral transfers (such as gifts from foreigners). ...
Imports and exports of goods and services Payments to foreign holders of a country's investments Payments received from investments abroad Transfers such as foreign aid and remittances A country'scurrent account balancemay be positive (a surplus) or negative (a deficit); in either case, the count...