Current assets definition

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.