The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CURRENT ASSETS Definition & Legal Meaning

Definition & Citations:

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.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.