what are current assets

Current assets are resources that a business owns and expects to use or sell within a year. They are important to a business because they allow it to pay its day-to-day operating expenses, bills, and loan payments. Current assets are often tangible, physical things that are expected to be used or converted to cash within a year. They are typically classified into current assets and long-term or fixed assets on a balance sheet. Examples of current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Non-current assets, on the other hand, are long-term investments that often cannot be turned into cash within a year. Examples of non-current assets include real estate, land, equipment, intangible assets, trademarks, copyrights, and patents.