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Current assets definition

Question
What is the definition of "current assets"? 
Answer
Current assets are cash and any other assets that can be converted into cash or used in business operations in a short period, generally less than one year. Current assets are found on the balance sheet. Examples of current assets include:

- Cash and equivalents
- Short-term investments
- Prepaid expenses
- Accounts receivable
- Inventories

Current assets represent a measure of liquidity for a business and, consequently, are also called liquid assets. Lenders often looks at the current asset level first when considering a loan application. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
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