Current Assets
/ˈkʌrənt əˌsɛts/
Definitions
- (n.) Assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
The company's current assets include cash, accounts receivable, and inventory, crucial for meeting short-term obligations.
Forms
- current assets
- current asset
Related terms
See also
Commentary
Current assets are key to assessing liquidity; drafters should specify the time frame (usually one year) for clarity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.