current asset

In accounting, a current asset is an asset on the balance sheet usually lasting less than one year such as accounts receivable, prepaids, cash, etc. Current assets is an accountancy term for liquid assets; that is, assets and property which can easily be converted into cash. This can be compared with fixed assets such as motor vehicles, which cannot easily be converted into cash. Current assets often include items such as cash in hand, or money in bank accounts.

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