What is CURRENT ASSETS?

Any ASSET on the balance sheet with a final maturity of less than one year. Common current assets include cash, marketable securities (e.g., BONDS, COMMON STOCK, PREFERRED STOCK, and other investments), INVENTORY, and ACCOUNTS RECEIVABLE. Current assets generally exhibit a high degree of LIQUIDITY and can often be converted into cash very quickly, at a price near carrying value. See also CURRENT LIABILITIES, CURRENT RATIO.

More On This Topic



Link to This Definition
Did you find this definition of CURRENT ASSETS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary