what is 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 - its current liabilities. Current assets are often tangible, physical things that are expected to be used or converted to cash within a year. They are not subject to depreciation. Examples of current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are listed on the balance sheet from most liquid to least liquid.